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Microsoft’s Revenue and AI Strategy
Microsoft’s Office products generated $54.9 billion in fiscal year 2024, accounting for 22% of the company’s total revenue. As of January 2024, Office 365 reached 400 million paid seats. This stable revenue from Microsoft 365 is fueling the company’s riskier investments in artificial intelligence (AI) as it aims to close the gap with competitors like OpenAI, Google, and Meta Platforms.
During an earnings call on July 30, 2024, Microsoft reported Azure revenue for the first time at $75 billion, reflecting a 34% increase. The company is projected to invest approximately $80 billion in AI-enabled data centers for model development. Microsoft’s market capitalization is nearing $4 trillion, and overall revenue increased by 18% from Q4 2024 to Q4 2025, indicating strong long-term growth potential.
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