AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.

Microsoft is trying to make users use Copilot more by removing a popular and helpful dictionary feature in Microsoft Word.

Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its artificial intelligence technology.

Microsoft reported lower-than-expected revenue growth for its AI and cloud divisions as scrutiny grows over tech's AI investments.

Microsoft is allowing Copilot+ PC users to test out the sexy new AI model from DeepSeek -- and on the NPU, no less.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.

Investors grow concerned that AI expenses and a looming price war in cloud services could blow up its profits.

On Jan. 30, Microsoft showed off the latest Surface for Business Copilot+ PCs, Surface Laptop 7 and Surface Pro 11. Both will be on store shelves Feb. 18. Just a day earlier, the company announced all users of the Microsoft Copilot AI assistant will be able to toggle on OpenAI’s o1 model for slower, more “thoughtful” responses.

Microsoft is making waves in the AI space, giving Windows users free access to OpenAI's o1 model, while OpenAI charges up to $200/mo for it.

CEO acknowledges efficiency of DeepSeek, and need to assess model optimisation rather than just buying more AI servers.