According to a statement made by Microsoft on Tuesday, its cloud computing and artificial intelligence services increased sales and profits in the first three months of this year.
Microsoft, which placed a significant wager on using ChatGPT's AI technology, declared a profit of $18.3 billion on sales of $52.9 billion.
“Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI,” stated Satya Nadella, CEO of Microsoft.
When compared to the same quarter last year, revenue in a productivity and business area, which includes Office 365, grew 11% to $17.5 billion.
Microsoft's sophisticated “Intelligent Cloud” online software services had a 16 percent increase in revenue to $22.1 billion, according to earnings data.
As sales decline in that market, the gains more than make up for declines in income from licensing Windows software to computer manufacturers.
The most sophisticated AI models in the world are joining forces with natural language, which is the most widely used user interface, to usher in a new era of computing, according to Nadella.
Microsoft has continued to advance its AI revolution, lately stating that it will integrate ChatGPT's capabilities into its venerable Excel, Word, and Outlook products.
The Redmond, Washington-based company has been embracing language-based AI quickly, exercising less caution than its competitors despite early issues like chatbots providing unsettling replies or flagrantly false information.
Copilot, a new chatbot from Microsoft, uses capabilities similar to ChatGPT to produce meeting notes, calendar entries, or PowerPoint presentations nearly instantly.
The main idea behind the new version is that generative AI, which refers to ChatGPT-like capabilities, will serve as a personal assistant for users of Microsoft's well-known office suite rather than taking over office duties on its own.
At a virtual release ceremony, Nadella stated, “You could say we've been using AI on autopilot and with this next generation of AI, we are moving from autopilot to copilot.”
The business that is developing the technology that underpins ChatGPT and has just launched its most recent version, GPT-4, is called OpenAI, and Microsoft is investing billions of dollars in it.
A chatbot on Microsoft's Bing search engine, which is acquiring more users as a result of AI adoption, is already built on that technology, which OpenAI claims can be triggered by both visuals and words.
Other tech behemoths are approaching generative AI with greater caution out of concern for the shame that may result from the technology going awry.