Microsoft reported a 17% increase in revenue to $81.3 billion for the October-December quarter, with a net profit of $30.9 billion, beating expectations. Excluding investments in OpenAI, profit was $38.5 billion. OpenAI converted to a for-profit corporation, with Microsoft retaining commercial rights to products through 2032. AI cloud computing sales were $32.9 billion, up 29%. Despite beating expectations, Microsoft stock dropped 5% in after-hours trading due to investor scrutiny over infrastructure spending for AI. CEO Satya Nadella noted they are still in the early stages of AI diffusion.

Read more at Yahoo Finance: Microsoft beats Wall Street expectations with $81.3B revenue