Microsoft opened its annual software developer conference on Monday, focusing on how to turn its large investments in artificial intelligence into useful and profitable tools for consumers and businesses.
The company, based in Redmond, Washington, has already spent $64 billion this year, mainly on data centers to support AI features like Copilot in Microsoft 365.
Microsoft is also adjusting its relationship with OpenAI, the maker of ChatGPT. While still a major investor, Microsoft has allowed OpenAI to work with Oracle on the “Stargate” data center project in Texas. This move suggests Microsoft is aiming to act as a neutral provider of AI infrastructure in the competitive AI industry.
CEO Satya Nadella has said that Microsoft can reduce costs by improving the performance of AI models. Once an AI model is finalized, it can run more efficiently, offering the same results with less computing power.
Most of Microsoft’s revenue-generating AI services run inside its own Azure cloud. For extra computing power during busy periods, the company turns to outside providers like CoreWeave, which specialize in AI-focused cloud services using Nvidia chips. Microsoft has said it prefers this flexible approach over building more of its own data centers.
Microsoft’s stock has risen more than 30% this year, showing strong investor support for its AI strategy.
