Microsoft (NASDAQ: MSFT) is a major player in the AI space, and one that’s involved in it in many ways.
It’s also one of the few companies that’s telling investors exactly how much revenue its AI business is generating right now
In its fiscal 2026 third quarter (which ended March 31), its AI annual recurring revenue grew by 123% year over year to surpass $37 billion. That’s impressive, and it’s not even the only AI growth lever Microsoft has right now. Microsoft has two businesses affected by AI The most prominent of Microsoft’s AI businesses is Copilot, the AI assistant it has integrated into its Microsoft 365 productivity suite, Windows, its Edge browser, and other software and services.
It also has other AI tools for other parts of its business, but Copilot gets the most attention. Another way Microsoft is exposed to AI is via its cloud computing platform, Azure. The basis of a cloud computing infrastructure business is to build excess computing power, then rent that power to customers.