DEMAND FOR AZURE AI FAR OUTSTRIPPED SUPPLY

$Microsoft(MSFT)$ over and over again on the earnings call: DEMAND FOR AZURE AI FAR OUTSTRIPPED SUPPLY

must have been said 10+ times. Theme of the call "we're capacity constrained"

On CapEx - will continue build out as long as demand signals persist, which as of now are very strong

Some data / stats on AI related products at Microsoft. Real revenue!

Azure AI Services

- $5b run rate up 900% YoY

- 60k customers up 60% YoY

- Responsible for ~8% of overall Azure growth this Q

Developer Tools

- GitHub at $2b run rate (It was ~$1b in Sept '22)

- GitHub CoPilot: ~$300m ARR. They accounted for 40% of overall GitHub growth this year and is "larger than GitHub when Microsoft acquired it"

- 77k orgs using CoPilot up 180% YoY

- 480k orgs using AI powered capabilities in Power Platform. 48m MAUs up 40% YoY

Future of Work

- Daily users of Office Copilot doubled QoQ

- Office CoPilot customers grew 60% YoY

- Customers with >10k seats of Office CoPilot doubled QoQ

- 1k customers used CoPilot for Security

Azure at a ~$81B run rate growing 30% constant currency Quarterly YoY growth trends below. Also shown estimated growth ex AI services for last couple quarters. This quarter AI represented 8% of growth (7% last Q, 6% Q before, 3% Q before that, 1% Q before that)

Image

Below is an estimate of net new ARR added over the last few quarters.

Image

YoY growth trends in net new ARR per quarter

Image

https://twitter.com/jaminball/status/1818413670411780598

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Theme of the call \"we're capacity constrained\"</p><p>On CapEx - will continue build out as long as demand signals persist, which as of now are very strong</p><h2 id=\"id_4167281028\">Some data / stats on AI related products at Microsoft. Real revenue!</h2><p>Azure AI Services</p><p>- $5b run rate up 900% YoY</p><p>- 60k customers up 60% YoY</p><p>- Responsible for ~8% of overall Azure growth this Q</p><p>Developer Tools</p><p>- GitHub at $2b run rate (It was ~$1b in Sept '22)</p><p>- GitHub CoPilot: ~$300m ARR. They accounted for 40% of overall GitHub growth this year and is \"larger than GitHub when Microsoft acquired it\"</p><p>- 77k orgs using CoPilot up 180% YoY</p><p>- 480k orgs using AI powered capabilities in Power Platform. 48m MAUs up 40% YoY</p><p>Future of Work</p><p>- Daily users of Office Copilot doubled QoQ</p><p>- Office CoPilot customers grew 60% YoY</p><p>- Customers with &gt;10k seats of Office CoPilot doubled QoQ</p><p>- 1k customers used CoPilot for Security</p><p>Azure at a ~$81B run rate growing 30% constant currency Quarterly YoY growth trends below. Also shown estimated growth ex AI services for last couple quarters. This quarter AI represented 8% of growth (7% last Q, 6% Q before, 3% Q before that, 1% Q before that)</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/0cf0b3a8f84eb3cf5475347d8c97ddeb\" tg-width=\"680\" tg-height=\"482\"><span>Image</span></p><p>Below is an estimate of net new ARR added over the last few quarters.</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/9f04abd3d8d5023d43724061f552e1a0\" tg-width=\"680\" tg-height=\"402\"><span>Image</span></p><p>YoY growth trends in net new ARR per quarter</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/7b8b0b0fd819951de1fb54f781b7d265\" tg-width=\"680\" tg-height=\"403\"><span>Image</span></p><p>https://twitter.com/jaminball/status/1818413670411780598</p></body></html>","htmlText":"<html><head></head><body><p> <a data-mention-id=\"MSFT\" class=\"teditor-mention\" data-mention-name=\"Microsoft\" href=\"https://ttm.financial/S/MSFT\">$Microsoft(MSFT)$</a> over and over again on the earnings call: DEMAND FOR AZURE AI FAR OUTSTRIPPED SUPPLY</p><p>must have been said 10+ times. Theme of the call \"we're capacity constrained\"</p><p>On CapEx - will continue build out as long as demand signals persist, which as of now are very strong</p><h2 id=\"id_4167281028\">Some data / stats on AI related products at Microsoft. Real revenue!</h2><p>Azure AI Services</p><p>- $5b run rate up 900% YoY</p><p>- 60k customers up 60% YoY</p><p>- Responsible for ~8% of overall Azure growth this Q</p><p>Developer Tools</p><p>- GitHub at $2b run rate (It was ~$1b in Sept '22)</p><p>- GitHub CoPilot: ~$300m ARR. They accounted for 40% of overall GitHub growth this year and is \"larger than GitHub when Microsoft acquired it\"</p><p>- 77k orgs using CoPilot up 180% YoY</p><p>- 480k orgs using AI powered capabilities in Power Platform. 48m MAUs up 40% YoY</p><p>Future of Work</p><p>- Daily users of Office Copilot doubled QoQ</p><p>- Office CoPilot customers grew 60% YoY</p><p>- Customers with &gt;10k seats of Office CoPilot doubled QoQ</p><p>- 1k customers used CoPilot for Security</p><p>Azure at a ~$81B run rate growing 30% constant currency Quarterly YoY growth trends below. Also shown estimated growth ex AI services for last couple quarters. This quarter AI represented 8% of growth (7% last Q, 6% Q before, 3% Q before that, 1% Q before that)</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/0cf0b3a8f84eb3cf5475347d8c97ddeb\" tg-width=\"680\" tg-height=\"482\"><span>Image</span></p><p>Below is an estimate of net new ARR added over the last few quarters.</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/9f04abd3d8d5023d43724061f552e1a0\" tg-width=\"680\" tg-height=\"402\"><span>Image</span></p><p>YoY growth trends in net new ARR per quarter</p><p class=\"t-img-caption\"><img title=\"Image\" src=\"https://community-static.tradeup.com/news/7b8b0b0fd819951de1fb54f781b7d265\" tg-width=\"680\" tg-height=\"403\"><span>Image</span></p><p>https://twitter.com/jaminball/status/1818413670411780598</p></body></html>","text":"$Microsoft(MSFT)$ over and over again on the earnings call: DEMAND FOR AZURE AI FAR OUTSTRIPPED SUPPLY must have been said 10+ times. Theme of the call \"we're capacity constrained\" On CapEx - will continue build out as long as demand signals persist, which as of now are very strong Some data / stats on AI related products at Microsoft. Real revenue! Azure AI Services - $5b run rate up 900% YoY - 60k customers up 60% YoY - Responsible for ~8% of overall Azure growth this Q Developer Tools - GitHub at $2b run rate (It was ~$1b in Sept '22) - GitHub CoPilot: ~$300m ARR. They accounted for 40% of overall GitHub growth this year and is \"larger than GitHub when Microsoft acquired it\" - 77k orgs using CoPilot up 180% YoY - 480k orgs using AI powered capabilities in Power Platform. 48m MAUs up 40% YoY Future of Work - Daily users of Office Copilot doubled QoQ - Office CoPilot customers grew 60% YoY - Customers with >10k seats of Office CoPilot doubled QoQ - 1k customers used CoPilot for Security Azure at a ~$81B run rate growing 30% constant currency Quarterly YoY growth trends below. Also shown estimated growth ex AI services for last couple quarters. This quarter AI represented 8% of growth (7% last Q, 6% Q before, 3% Q before that, 1% Q before that) Image Below is an estimate of net new ARR added over the last few quarters. Image YoY growth trends in net new ARR per quarter Image https://twitter.com/jaminball/status/1818413670411780598","highlighted":1,"essential":1,"paper":2,"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/333247648071696","repostId":0,"isVote":1,"tweetType":1,"viewCount":155,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["MSFT"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":1198,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/333247648071696"}