Just reported our quarterly results.
We are still in the beginning phases of AI diffusion and its broad GDP impact, and already we’ve built an AI business that is larger than some of our biggest franchises that took decades to build.
Our quarterly cloud revenue crossed $50 billion for the first time. What’s striking is it was less than 10 years ago that our annual cloud revenue was $10 billion! (That is what expanding TAM + good execution looks like)
A few other highlights from across the stack:
1/ Cloud & Token Factory: The key metric we are optimizing for is tokens per watt and per dollar, which is all about increasing utilization and decreasing TCO using silicon, systems, and software.
A good example is the 50% increase in throughput we were able to achieve in one of our highest volume workloads – OpenAI inferencing powering our Copilots.
We will also continue to scale our new 1P systems like Maia 200 with every gen, and look for the best economics and innovation from our ecosystem partners.
2/ Agent Platform: Like in every platform shift, all software is being rewritten. A new app platform is born. You can think of agents as the new Apps.
We’re providing everything customers need to build their own agents, including model catalogs, harnesses for orchestration, context engineering, plus AI safety and observability.
Already, over 1.5K customers have used both Anthropic and OpenAI models on Foundry.
250+ customers are on track to process >1T tokens on Foundry this year.
Fabric is also gaining momentum, now at a $2B annual run rate.
And we’re creating a new category w/Agent 365, which extends governance, identity, security, and management to agents.
3/ High Value Agentic Experiences: We are entering an age of macro delegation and micro steering across domains. Intelligence using multiple models is built into multiple form factors.
Lots of momentum across our family of Copilots:
• Consumer: Daily users of Copilot app up nearly 3X year-over-year
• Productivity: 15M paid M365 Copilot seats, and multiples more enterprise Chat users
• Coding: 4.7M paid GitHub Copilot subs, up 75% year-over-year
• Healthcare: 21M patient encounters documented, up over 3X year over year
4/ Bottomline: Our TAM will grow substantially across every layer of the tech stack as this diffusion accelerates and spreads, and we feel very good about how we’re delivering for our customers today and innovating to capture the opportunity ahead.
You can read more about our results here: https://lnkd.in/g92aPQj9
