Microsoft's AI Venture Set to Surpass Existing Business Lines, CEO Says

In a shocking turn of events, Microsoft's artificial intelligence venture is on track to generate $13 billion in annual revenue this quarter, marking a staggering 175% increase from the previous year. According to CEO Satya Nadella, AI has become a key driver of growth for the tech giant, with revenues expected to continue their meteoric rise.

In comments made during Microsoft's earnings call earlier Wednesday, Nadella revealed that LinkedIn, which is owned by Microsoft, projected future revenue growth to remain in the "low- to mid-single digits" - a far cry from the explosive growth seen in AI. The professional networking platform cited ongoing challenges within its Talent Solutions division as a key drag on performance.

Meanwhile, Satya Nadella has set his sights on helping customers unlock the full ROI of AI, with revenues expected to become increasingly driven by this tech. He stated that Microsoft's AI business has already surpassed $13 billion in annual revenue run rate, marking an impressive 175% year-over-year growth.

"We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," said Nadella. "Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year."

In addition to its promising outlook for AI, Microsoft's broader earnings paints a mixed picture overall. Revenue rose 12% to $69.6 billion, operating income jumped 17%, and diluted earnings per share rose 10%. However, the company also emphasized its commitment to balancing operational discipline with continued investments in its cloud and AI infrastructure.

Nadella also highlighted LinkedIn's success, which saw a record $2 billion in Premium subscriptions revenue last year.