Microsoft heads into Q4 earnings announcement with one big Risk Question: Is the company’s AI …
Microsoft investors who will be attending the company’s upcoming fourth quarter earnings call may have one ‘big question’ for the tech giant. They are expected to ask the company: Is the company’s AI ‘upper hand’ at risk as its partner OpenAI plans to go public while reportedly discussing partnership opportunities with rivals like Google, Oracle and CoreWeave for cloud services? Due to its exclusive licensing deals and access to OpenAI’s models, Microsoft has been a significant beneficiary of the generative AI boom. This partnership has reportedly fueled growth in Microsoft’s Azure cloud business and pushed its market value toward $4 trillion. According to data shared by Visible Alpha (seen by the news agency Reuters), the tie-up is expected to have driven a 34.8% increase in Microsoft’s cloud service Azure’s revenue for the April-June quarter, which exceeds the 33% rise in the last quarter.
