Microsoft Hosts Developer Conference as Focus Grows on AI Profits s6qx Technology News

Microsoft shares are up more than 30 percent this year, defying a broader Nasdaq decline. 5b1d

By Reuters | Updated: 19 May 2025 20:13 IST

Photo Credit: Reuters 3v6d2p

Satya Nadella said Microsoft can obtain 10 times better performance for the same computing costs

Highlights

Microsoft said demand for Azure cloud computing is growing
The company plans to continue investing in AI
Microsoft is letting OpenAI work on "Stargate" with Oracle

ment

Microsoft hosts its annual software developer conference in Seattle on Monday, drawing thousands of coders looking to turn the past years of investments into artificial intelligence into profitable products and services for consumers and businesses.

The Redmond, Washington-based software giant, which is an investor and deep strategic partner with Microsoft 365 applications.

But there are signs that Microsoft -- whose shares are up more than 30 percent this year, defying a broader Nasdaq decline -- is reworking its relationship with OpenAI and seeking to become a neutral arms dealer in the AI race.

Microsoft is Reportedly Rolling Out This Dedicated Phone Link

Earlier this year, Microsoft allowed OpenAI to branch out and work with Oracle on the massive "Stargate" data center project in Texas.

Meanwhile, CEO Satya Nadella has argued the company can get expenses down, saying that once it settles on an algorithm and begins to optimise it, Microsoft can obtain 10 times better performance for the same computing costs.

Demand for AI services in Microsoft's Azure cloud computing is also continuing to grow.

Microsoft Might Adopt Anthropic’s M to Power Multiple AI Agents

Thomas Blakey, an equity analyst with Cantor Fitzgerald, said that the company is increasingly keeping revenue-generating AI services inside its own data centers, where it can continue to tweak them for better cost.

It shifting to only using outside data center services such as CoreWeave, which is known as a "neocloud" that focuses on offering AI chips from Nvidia, when Microsoft needs short bursts of extra computing power for specific projects.

"If they have to flex up in some way, they've been consistently saying that they're going to shift away from buying more data centers and dirt and cement and they're going to leave that to the neoclouds," Blakey told Reuters.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.