**Microsoft’s AI Bet is Paying Off in a Big Way**
Microsoft’s investment in OpenAI is already yielding some serious dividends – a whopping $7.6 billion in earnings, to be exact. And it’s not just the sheer amount that’s impressive, but the way it’s happening. Only a few years ago, Microsoft dropped a ginormous $13 billion on the AI lab, and now it’s clear that was a smart move.
According to Microsoft’s latest earnings report, their web earnings have jumped by a staggering $7.6 billion thanks to the partnership with OpenAI. While neither party is disclosing the exact profit split, industry insiders are saying it’s a tidy 20% – no wonder Microsoft is raking it in.
But that’s not all – OpenAI’s valuation has skyrocketed, and the AI lab is looking to raise even more cash. We’re talking $750-830 billion. And get this: just last September, OpenAI renegotiated its deal with Microsoft, agreeing to buy an additional $250 billion in Azure services. That deal has contributed to Microsoft’s “business remaining performance obligations” jumping to a staggering $625 billion – and 45% of that came from OpenAI alone.
But Microsoft isn’t stopping at OpenAI. The company is also pumping billions into another AI lab, Anthropic, with a $5 billion investment and 30 billion dollars in Azure compute capacity. And guess what? Anthropic got a shout-out in the earnings report, contributing to a 230% boost in Microsoft’s business bookings.
And we’re not even scratching the surface yet. Microsoft is also shelling out $37.5 billion in the quarter for GPUs and CPUs to fuel its AI ambitions – two-thirds of which went towards cloud Azure infrastructure. No surprise there, given the massive demand for AI services.
Microsoft’s Q2 earnings report was a clear win, with $81.3 billion in revenue (a 17% year-over-year increase) and a record-breaking $50 billion in Microsoft Cloud revenue. It’s clear that Microsoft’s bet on AI is paying off in a BIG way.
Stay tuned for our upcoming event in Boston on June 23rd to stay up-to-date on the latest AI trends and Microsoft’s next moves.
**Sources:**
* Microsoft’s Q2 earnings report
* Bloomberg’s report on OpenAI’s funding round
* Microsoft’s investment in Anthropic
