Microsoft earnings harness AI power as Azure cloud gains, outlook impress

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Microsoft's first-mover advantage in AI looks to be paying dividends as cloud growth topped Street forecasts and powered the tech giant to better-than-expected first quarter earnings.

shares powered higher in pre-market trading after the tech giant posted stronger-than-expected first quarter earnings it said was powered in part by its early investments in AI.

Azure revenues were up 29% from last year, outpacing the 19% gain for its broader Intelligent Cloud division and the 12.7% advance in overall group revenues, which topped Street forecasts at $56.52 billion. "More than 18,000 organizations now use Azure OpenAI service, including new-to-Azure customers," CEO Satya Nadella told investors on a conference call late Tuesday."And we are expanding our reach with digital-first companies to power their AI solutions, therefore, making them Azure customers as well."Microsoft shares were marked 3.75% higher in pre-market trading to indicate an opening bell price of $342.92 each.

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