Microsoft is heavily investing in generative AI through partnership with OpenAI, driving revenue growth

From Nasdaq: 2025-02-15 07:02:00

Microsoft (NASDAQ: MSFT) is a key player in generative AI, with investments in ChatGPT creator OpenAI. The company’s earnings call highlighted its AI strategy and $80 billion data center infrastructure spending to enhance Azure cloud services. Microsoft’s partnership with OpenAI ensures access to advanced AI models, boosting its AI business revenue by 175%.

DeepSeek’s AI advancements challenge spending norms, but Microsoft remains focused on building advanced data centers. The company aims to stay ahead in cloud services by integrating AI tools for Azure customers. Microsoft’s strategic investment in OpenAI, totaling $13 billion, has already enhanced its AI offerings and revenue growth.

Microsoft’s partnership with OpenAI includes mutual benefits, exclusive access to AI models, and revenue sharing agreements. With a focus on AI, Microsoft aims to capitalize on the growing cloud market and predicts a $2 trillion industry by 2030. The company’s early investment in OpenAI has positioned it well in the AI race, driving Azure sales and future growth opportunities.

Considering a $1,000 investment in Microsoft? The Motley Fool’s Stock Advisor team recommends 10 other stocks for potential monster returns. Stock Advisor offers a blueprint for success, with expert guidance and new stock picks monthly. Past recommendations have outperformed the S&P 500, providing a strong track record for investors.

Disclosure: The author has no position in mentioned stocks. The Motley Fool recommends Amazon, Goldman Sachs, and Microsoft, with stock options on Microsoft. Board member John Mackey has ties to Amazon. Views expressed are the author’s and not Nasdaq’s.



Read more at Nasdaq: Here’s How Generative AI Factors Into Microsoft’s Plan for Growth