Microsoft has restructured its reporting framework for business units, shifting some search and news advertising revenue to the Azure cloud-computing unit. This change aims to provide investors with a clearer understanding of the contributions made by AI technologies. The company also moved revenue from its Nuance unit, which focuses on AI and speech technology, under the productivity business, aligning reporting with management practices.
This restructuring comes amid increasing pressure on big tech firms like Microsoft and Google to demonstrate the financial returns on their substantial investments in AI infrastructure. Microsoft stands out as one of the few major companies that explicitly reports AI contributions in its earnings, revealing that AI has positively impacted Azure's growth despite a general slowdown in business. The company anticipates a significant acceleration in Azure's growth in the latter half of fiscal 2025, indicating a strategic focus on leveraging AI for future success.
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Isomorphic Labs, the AI drug discovery platform that was spun out of Google's DeepMind in 2021, has raised external capital for the first time. The $600
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Sam Altman today revealed that OpenAI will release an open weight artificial intelligence model in the coming months. "We are excited to release a powerful new open-weight language model with reasoning in the coming months," Altman wrote on X.