Microsoft, which posted 16 percent rise in revenue to $65.6 billion, has revealed its AI achievements during the first-quarter of 2025 fiscal.
Microsoft’s AI business is projected to surpass a $10 billion annual revenue run rate next quarter, marking it as the fastest business to reach this milestone in company history, Microsoft CEO Satya Nadella said.
Nearly 70 percent of Fortune 500 companies are using Microsoft 365 Copilot, which is being adopted faster than any previous Microsoft 365 suite.
Microsoft has established a comprehensive system for AI business transformation, featuring Microsoft 365 Copilot, Copilot Studio, and autonomous agents that enhance operational efficiency.
Microsoft has data centers in over 60 regions, with recent investments in cloud and AI infrastructure in Brazil, Italy, Mexico, and Sweden to meet long-term demand.
The new Cobalt 100 VMs are utilized by leading companies like Databricks and Siemens, delivering up to 50 percent better price-performance for general-purpose workloads.
Microsoft was the first cloud provider to implement NVIDIA’s Blackwell system with GB200-powered AI servers, further enhancing its AI capabilities.
Usage of Azure OpenAI has more than doubled in six months, with companies like GE Aerospace leveraging it to improve internal processes significantly.
Azure AI is facilitating connections to data and analytics services, resulting in higher usage of Azure Cosmos DB and Azure SQL DB Hyperscale.
More than 16,000 paid customers, including 70 percent of Fortune 500 companies, are using Microsoft Fabric to unify their data across different cloud platforms.
GitHub Copilot Enterprise saw a 55 percent increase in customers quarter-over-quarter, with features that enhance code generation and vulnerability fixing.
Nearly 600,000 organizations have adopted AI-powered capabilities in the Power Platform, helping streamline app development and workflow automation.
The latest innovation wave includes improved speed and response quality, with organizations like Vodafone reporting significant time savings for employees.
Dynamics 365 is gaining market share, with a 60 percent increase in active users of Copilot across CRM and ERP solutions.
DAX Copilot is actively documenting over 1.3 million physician-patient encounters monthly across more than 500 healthcare organizations.
Microsoft Defender has been used to secure over 750,000 GenAI app instances, while Purview has audited more than a billion Copilot interactions for compliance.
Microsoft anticipates higher AI-related spending this quarter, with capital expenditures reaching $20 billion in the first quarter, a 5.3 percent increase from the previous quarter. Spending is expected to exceed $80 billion for the fiscal year, up by over $30 billion from last year.
Azure, Microsoft’s cloud service, grew by 33 percent in Q1. The company forecasts slower growth of 31-32 percent for Q2. AI contributed 12 percentage points to Azure’s growth, up from 11 points in the prior quarter.
Outside of cloud, Microsoft’s productivity division, including Office 365 and AI-driven tools, saw revenue of $28.3 billion. The personal computing unit, including Windows and Xbox, posted a 17 percent rise to $13.2 billion.
Baburajan Kizhakedath
