News Microsoft’s Nadella: AI is the ‘next platform wave’ for business success
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microsoft (NASDAQ: MSFT) CEO Satya Nadella wasted little time on Tuesday laying out the new philosophy behind the software giant’s foray into artificial intelligence technology.
Speak on conference call discussing Microsoft (MSFT)) second-quarter results, Nadella said the company’s emphasis on artificial intelligence is largely based on “changing [business] environment” due to customers looking to optimize their technology spend” given [ongoing] Economic uncertainty. “Nadella said that the realities of the market have made a big difference to Microsoft’s (Microsoft Corporation) own priorities.
“Maximum [business] Value is created in market changes,” Nadella said. “We have the ability to capture AI opportunities that customers like OpenAI use.
Nadella’s comments came a day after Microsoft (MSFT) confirmed it had made a “multi-year, multi-billion dollar” investment in ChatGPT developer OpenAI. Microsoft (MSFT) did not disclose the exact amount of its investment, but various reports put it at $10B.
Last week, Microsoft (MSFT) said it would start integrating ChatGPT into its Azure cloud service offering. On Tuesday, Nadella said Microsoft (MSFT) had more than 200 customers using AI to migrate to Azure.
As for extending the role of AI beyond Azure, Nadella has no doubts about where he thinks Microsoft (MSFT) will take the technology.
“We fundamentally believe that the next wave of platforms will be artificial intelligence,” Nadella said. “[With AI] There has been a fundamental change at the heart of cloud computing.We fully expect that we will incorporate AI into every part [Microsoft technology] heap. “
Chief Financial Officer Amy Hood analyzed Microsoft’s (MSFT) expectations for the company’s third-quarter business development. Without giving any firm EPS or revenue forecasts, Hood said Microsoft (MSFT) expects foreign exchange rates to result in a “three percent reduction in revenue.”
Last week, Microsoft (MSFT) said it would lay off 10,000 employees worldwide and take a $1.2B charge related to the layoffs.
