If you’ve learned anything about Microsoft over the past few weeks, it means that the company loves AI and hates hiring people. Is that an unfair read? Perhaps, but it’s hard not to grow cynically about the company, as they continue to fire thousands of employees, even if they’re investing in controversial new technology. Microsoft’s latest financial report also suggests that they are also enjoying significant rewards from these investments.
According to Microsoft’s latest revenue release, the company was quarterly at $27.2 billion, up 24% from the previous year. These revenues were supported by a significant boost in revenue from Azure, a cloud computing platform with many of Microsoft’s AI efforts.
“Cloud and AI are the driving force behind business transformation across all industries and sectors,” CEO Satya Nadella said as part of the report. “We are innovating throughout Tech Stack to help our customers adapt and grow in this new era. This year, Azure has grown 34%, surpassing revenue of $75 billion, up 34%, as all workloads grow.”
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You may recall Nadella’s previous top-notch comments on AI. This was accompanied by the approval of the company’s layoffs in the merely “prosperous” economic victory of the “mystery of success.”
Microsoft’s gaming revenue rose 10% in the quarter, while content and services rose 13% “due to growth in first-party content and Xbox game pass,” where Xbox hardware appears to have fallen 22%. From Windows to Microsoft 365 to LinkedIn, games are directed towards Microsoft. Not only is it not as high as cloud and AI, but the business world seems happy to follow the sharpest lines on the graph, excluding everything else.
The company “chosen” between losing valuable employees in small cities or cutting spending on AI technology, according to reports that emerged shortly after the massive layoffs affecting 9,000 Microsoft employees. The choices created by Microsoft seem to be rewarded for now in the immoral world of publicly available companies.
“A giant black hole that sucks everything and exhales bones”: Devs reacts to anger and concern as Microsoft’s layoffs watch big cuts and cancellations in the game studio.
