Microsoft’s Nadella: AI ‘next platform wave’ for business success

Microsoft (NASDAQ:MSFT) CEO Satya Nadella wasted little time Tuesday laying out the software titan’s new philosophy behind its push into artificial intelligence technology.

Speaking on a conference call to discuss Microsoft (MSFT.)) fiscal second quarter results, Nadella said the company’s emphasis on AI is largely “shifting.” [business] Environment “is born from customers looking to optimize their own spending on technology. [ongoing] Economic instability.”MSFT) priorities.

“High [business] “Value is created during shifts in the market,” Nadella said. “We are well positioned to capture the opportunities in AI that customers like OpenAI can take advantage of.”

Nadella’s comments came a day after Microsoft ( MSFT ) confirmed a “multi-year, multi-billion dollar” investment in ChatGPT developer OpenAI. Microsoft (MSFT) did not disclose the exact amount of the investment, but various reports put it at 10 billion.

Last week, Microsoft ( MSFT ) said it would begin integrating ChatGPIT with its Azure cloud service offerings. On Tuesday, Nadella said Microsoft ( MSFT ) has already moved more than 200 of its customers to Azure with AI.

As far as expanding the role of AI beyond Azure, Nadella has no doubt where Microsoft ( MSFT ) will take the technology.

“Fundamentally, we believe the next wave of the platform will be AI,” Nadella said. “[With AI] The essence of cloud computing is fundamentally changed. We fully expect to incorporate AI into every class. [Microsoft technology] stack”

Chief Financial Officer Amy Hood looked at how Microsoft (MSFT) expects business to perform in the company’s fiscal third quarter. Without providing any actual earnings per share or revenue forecasts, Microsoft ( MSFT ) said it expects foreign exchange rates to “reduce revenue by three points.”

Last week, Microsoft ( MSFT ) said it would lay off 10,000 workers worldwide and pay $1.2B in layoffs.