That had analysts cautiously optimistic about Microsoft's investment in AI — and theshowed the investment is already starting to pay off.
"This is a huge number, and while AI has been part of the Azure story for years, for AI to already generate 1% incremental growth, shows that demand for AI — especially post the GPT announcements — is going to be a big driver of Azure," Bernstein analyst Mark Moerdler wrote in a note to clients. On the call with analysts Tuesday, Microsoft CEO Satya Nadella emphasized that investing in the"new wave" of AI, and expanding the company's market share, was a top priority.
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