Home > Article > Technology peripherals > Microsoft is going crazy! After being connected to ChatGPT, it was submitted for the first time, with revenue of US$52.8 billion in the first quarter.
Microsoft has earned this wave of dividends from ChatGPT.
On the 25th local time, Microsoft announced its first quarter financial report for 2023, with revenue of US$52.8 billion.
After the financial report was released, Microsoft’s after-hours price rose by 9%.
After the close, Microsoft’s market value was US$2.05 trillion, making it the third-highest market value company in the world.
How did Microsoft successfully counterattack after accessing ChatGPT.
Overall, Microsoft’s financial report showed that all key indicators exceeded market expectations.
Revenue for this quarter was US$52.9 billion, a year-on-year increase of 7%; net profit was US$18.3 billion, a year-on-year increase of 9%; earnings per share was US$2.45, a year-on-year increase of 10%.
Currently, Microsoft's revenue mainly comes from three businesses, namely cloud business, productivity and business process business and personal computer business.
Specifically, most of its revenue comes from cloud computing, and its intelligent cloud business has a profit of US$22 billion, a year-on-year growth of 16%.
Among them, Microsoft Office 365 revenue increased by 14%, and Microsoft search and news advertising revenue increased by 10% year-on-year, both exceeding analyst expectations. .
In mid-March, Microsoft announced that it would integrate GPT-4 into office software.
It can be seen that the significant growth in revenue from search engine Bing, Office tools and other businesses is inseparable from the driving effect of ChatGPT.
TECHnanalysis Research analyst Bob O'Donnell said that Microsoft's cloud revenue growth has allowed many companies to see the value of cloud computing, but in reality it is still A large percentage of workloads can be moved to the cloud.
Nadella said that the company has nearly 2,500 Azure-OpenAI service customers and said that AI has been integrated into a variety of products.
Search engine Bing, which has long lagged behind Google and has 100 million daily users, has seen a huge increase in downloads since adding artificial intelligence capabilities.
In addition, it can be seen from Sensor Tower data that 6 weeks after Microsoft announced that it would include ChatGPT in search, Bing’s traffic soared by 16 %.
Microsoft CEO Nader said, “The combination of the world’s most advanced AI models and the world’s most versatile user interface – natural language – has created a new era of computing. ."
In addition, because PC sales have been declining in recent quarters, and many analysts believe that this economic environment will hit Microsoft's Windows business .
However, this financial report showed that the decline in Windows-related sales was not as serious as expected.
Although according to the data, personal computer business revenue fell by 9% year-on-year and Windows system revenue fell by 28% year-on-year, these figures are still significantly better than the previous quarter.
On the same day, Google also announced its first quarter financial report for fiscal year 2023.
Data shows that net profit in the first quarter of 2023 reached US$15 billion, exceeding market expectations, and revenue was close to US$70 billion, US$1 billion higher than expected.
Here, it needs to be emphasized that Google’s future is not entirely focused on artificial intelligence. In its latest financial report, Google disclosed for the first time that its cloud business was profitable.
Currently, search engines are facing fierce competition from all parties.
Microsoft is trying to steal users from Google through Bing, which is powered by GPT-4. At the same time, ChatGPT allowed Microsoft to counterattack and also sounded the alarm within Google.
Google initially opened Bard in March, but more than a month later, Google still calls Bard an "experimental product."
In addition, previous reports stated that Google employees even labeled Bard as "terrible" and said, "In our own tests, Bard often performs worse than necessary." Ying and ChatGPT.
Although Alphabet has to deal with a slowing advertising industry, a series of recent actions indicate that it is increasing research and development, To regain a foothold.
In Pichai’s view, despite the slowdown in growth, the search business is “performing well.”
It is worth mentioning that Google still has more than 90% of the search market share. Pichai said he was "rest assured" that Google would continue to improve search and become competitive in future deals.
In order to prepare for the coming artificial intelligence war, Google announced last week that it is reorganizing its artificial intelligence department.
The independently operated DeepMind subsidiary will be merged with the Google Brain team established in 2015 to form a division, Google DeepMind.
Last month, Google officially announced plans to integrate generative AI capabilities into the workSpace family bucket.
Pichai said on the conference call that I think this will be one of the areas where AI applications will bring huge innovations: generative AI can bring huge benefits to productivity improvements.
At the upcoming Google I/O conference on May 10, Google will announce its latest progress in artificial intelligence.
I wonder, what surprises will Google bring?
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