Microsoft's CFO, Amy Hood, revealed that its next-generation AI business is expected

 

Microsoft's CFO, Amy Hood, revealed that its next-generation AI business is expected to be the company's fastest-growing segment.  During a public call this week, Hood said Microsoft could generate over $10B annually in revenue from AI usage on its Azure cloud and OpenAI's models. Kevin Scott, Microsoft's CTO, said there are a variety of ways the $10B in annual recurring revenue could present itself. For example, he said that customers use Microsoft's infrastructure to train or run AI models and make API calls on an OpenAI-built model. Microsoft shares soared on Thursday by 3.2% to a record high. It reached a nearly $2.6T market cap, partly thanks to market enthusiasm around AI. Last month, OpenAI partner Microsoft said it's integrating Bing as the default search engine in ChatGPT for subscribers. While Microsoft has already incorporated OpenAI technology into Bing and other products, the update brought Bing into OpenAI's ecosystem.