Microsoft Hosts Developer Conference as Focus Grows on AI Profits

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo
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Microsoft Hosts Developer Conference as Focus Grows on AI Profits

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo

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 ChatGPT creator OpenAI, and has already spent $64 billion this year, much of it on data centers needed for AI-based services such as Copilot used in its popular Microsoft 365 applications.

But there are signs that Microsoft -- whose shares are up more than 30% 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, Reuters reported.

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 optimize 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.

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.



SDAIA Launches 'National AI Index' to Measure Saudi Govt Readiness for Adopting AI 

SDAIA Launches 'National AI Index' to Measure Saudi Govt Readiness for Adopting AI 
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SDAIA Launches 'National AI Index' to Measure Saudi Govt Readiness for Adopting AI 

SDAIA Launches 'National AI Index' to Measure Saudi Govt Readiness for Adopting AI 

The Saudi Data and Artificial Intelligence Authority (SDAIA) launched the "National AI Index," with over 180 representatives from participating government entities attending the first assessment cycle.

The goal of the index is to evaluate institutional readiness for adopting artificial-intelligence (AI) technologies, regularly monitor progress, and provide recommendations to support development efforts and achieve the desired national impact, reported the Saudi Press Agency on Wednesday.

The index aims to align government efforts and national priorities in the field of AI, while providing the necessary enablers to support government entities in adopting and developing effective and sustainable AI solutions that contribute to achieving the goals of Saudi Vision 2030.

The index is built on three main pillars, seven core dimensions, and 23 subcategories to ensure a comprehensive assessment of government entities' readiness in the AI field. It provides results that reflect the maturity level of AI adoption across entities, along with the necessary support to enhance their capabilities in developing innovative solutions that sustain national efforts and maximize their impact in priority sectors.

The index is part of SDAIA's broader efforts as the national reference for data and AI in the Kingdom, overseeing their regulation, development, and application.

It aims to promote the adoption of AI technologies and improve institutional performance, thereby advancing digital transformation across government entities. The initiative aligns with SDAIA's strategic partnerships to support the goals of Saudi Vision 2030 to build a knowledge- and innovation-based economy.