Microsoft (NASDAQ: MSFT) CEO Satya Nadella wasted little time Tuesday in laying out the software titan’s new philosophy behind its foray into artificial intelligence technology.
Speaking on a conference call to discuss Microsoft (MSFT) fiscal second quarter results, Nadella said the company’s emphasis on artificial intelligence is based in large part on “changing [business] environment” which is the result of customers looking to optimize their own spending on technology “with regard to [ongoing] economic uncertainty.” Nadella said market realities have affected Microsoft (MSFT) own priorities.
“Maximum [business] value is created during changes in the market,” Nadella said. “We are well positioned to take advantage of opportunities in AI that are being used by customers like OpenAI.”
Nadella’s comments came a day after Microsoft ( MSFT ) confirmed it made a “multi-year, multi-billion dollar” investment in OpenAI developer ChatGPT. Microsoft (MSFT) did not disclose the exact amount of its investment, but various reports put it at $10 billion.
Last week, Microsoft ( MSFT ) said it would begin integrating ChatGPT into its Azure cloud service offerings. On Tuesday, Nadella said that Microsoft ( MSFT ) has already moved more than 200 of its customers to Azure with AI.
As for expanding the role of artificial intelligence beyond Azure, Nadella left no doubt about where Microsoft ( MSFT ) appears to be taking the technology.
“We fundamentally believe that the next wave of platforms will be AI,” Nadella said. “[With AI] the core of cloud computing is fundamentally changing. We fully expect to embed AI into every part [Microsoft technology] stack.”
Chief Financial Officer Amy Hood provided insight into how Microsoft (MSFT) expects business to develop in the company’s third fiscal quarter. Without giving exact earnings per share or revenue forecasts, Hood said Microsoft ( MSFT ) expects foreign exchange rates to cause “a three-point reduction in revenue.”
Last week, Microsoft ( MSFT ) said it would lay off 10,000 employees worldwide and take $1.2 billion in job-related costs.