Microsoft discloses Azure revenue for the first time: $33.17B, up 48%

For the first time, Microsoft broke out Azure revenue in dollars: $33.17B for the quarter, up 48% and ahead of the $32.84B consensus. Guidance calls for 49-50% growth next quarter, so growth is still accelerating. GeekWire reports that OpenAI-related revenue hit $10B, larger than Bing or Xbox.

The OpenAI tie is deepening on both sides. OpenAI has committed to buy an additional $250B of Azure services. Capex is rising alongside revenue.

Satya Nadella said Copilot is being consolidated into one experience that combines Chat, Cowork, Autopilot and Code. Daily users grew nearly 50% quarter-over-quarter, and customers with more than 50K Copilot seats are up 8X year-over-year.

Caveat: the more Azure depends on OpenAI, the more concentrated its risk becomes. That matters especially after The Information reported OpenAI plans to buy Google TPUs.