Rate Of ReturnAug 6 at 01:33 AM
$Microsoft(MSFT.US) Tech giant Microsoft disclosed that it generated $24.1 billion in revenue from OpenAI during its latest fiscal year, which shows just how important the partnership has become. Based on Microsoft's earlier AI growth figures, OpenAI may have produced about 70% of the company's total AI-related sales during the year ended in June. For context, OpenAI pays Microsoft to use its cloud-computing infrastructure, which provides the enormous computing power needed to build and run AI models. OpenAI also covers certain model-development costs, while Microsoft receives a share of its revenue. Because Microsoft groups all of these payments together, investors have had trouble figuring out how much of its AI growth comes from OpenAI and how much comes from other customers. It also doesn't help that Microsoft has only provided limited details about the size of its overall AI business. Indeed, at the end of the March quarter, CEO Satya Nadella said that AI revenue had reached a pace that would equal more than $37 billion over a full year. Using Microsoft's reported growth rate, Bloomberg estimated that the business generated roughly $34 billion during the fiscal year. Compared with the $24.1 billion connected to OpenAI, that suggests OpenAI contributed close to 70%. However, Microsoft has started to distance themselves from OpenAI in recent months, as they search for other partnerships and trying to reduce its reliance on OpenAI's business amidst investors' concerns. @Captain's Treasure
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
