Like many big tech companies, Microsoft is preparing for the worst after announcing plans to lay off 10,000 employees in the upcoming third quarter. It turns out that the company’s second quarter was a mixed bag: It earned $52.7 billion in revenue, which was up 2 percent from last year, but a slight miss from the $52.9 billion analysts expected. Profits also fell by 12 percent to $16.4 billion, a trend that may continue throughout the year.
Despite the faltering PC market, Microsoft has been riding high on cloud revenues for years, and that seems to be continuing. its intelligent cloud business was up 18 percent from last year, reaching $21.5 billion. Microsoft’s belt tightening didn’t stop the company from potentially investing $10 billion more in ChatGPT creator OpenAI, yet another sign that AI is going to play a major role in its future projects. The company plans to add ChatGPT to its Azure OpenAI service soon, and it’s reportedly planning to integrated that technology in Bing.
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