Link: Microsoft says its AI business is on track to surpass an annual revenue run rate of $10B in Q2, its fastest product category ever to reach that milestone (Ina Fried/Axios)

Microsoft CEO Satya Nadella announced that the company's AI business is set to exceed a $10 billion annual run rate next quarter. This makes it the fastest product category in Microsoft's history to reach this milestone.

The growth is primarily driven by Microsoft's Azure cloud business, alongside contributions from other segments like Microsoft 365 productivity suite.

Nadella revealed this significant growth during a conference call that followed Microsoft's quarterly earnings report. Investors and analysts paid close attention to these figures.

Microsoft also highlighted that 70% of Fortune 500 companies now use their Microsoft 365 Copilot for some employees. This showcases the wide adoption of their productivity tools.

In related earnings details, Microsoft reported robust financial results, with per-share earnings of $3.30 on revenue of $65.6 billion. Both figures surpassed analyst expectations.

This financial success is echoed across the tech industry, with Google also reporting strong growth due to AI demand. Google's cloud business, similar to Microsoft, grew by 34% year-over-year. #

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