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Microsoft’s AI grew 157% year over year, but it’s not fast enough to appease DeepSeek-rattled investors

By Jerry  Published On January 31, 2025

Microsoft reported revenue of $69.6 billion, up 12% year over year. In spite of the reported growth, stocks fell 4.2% this morning as investors closely watch AI expenditures after this week’s upset from Chinese startup DeepSeek. Nadella, for his part, claimed the DeepSeek shakeup is a good thing for Microsoft.

The global tech giant also reported that its Microsoft 365 Copilot seats had 10x growth over the last 18 months, with Nadella stating that the tool is “seeing accelerated customer adoption across all deal sizes as we win new Microsoft 365 Copilot customers and see the majority of existing enterprise customers come back to purchase more seats.”

In addition to the AI tool itself, in reference to Azure, Nadella said Microsoft has “added more [data center] capacity last year than any other year in our history,” and that the “number of Azure OpenAI apps running on Azure databases and Azure App Services more than doubled year-over-year.

Source: FORTUNE


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