After Tim Cook, Microsoft's Satya Nadella Plans Southeast Asia Tour, Targets AI Discussions

Microsoft Corp MSFT CEO Satya Nadella is set to visit Southeast Asia next week. The agenda for his visit includes discussions on artificial intelligence (AI) with government officials and developers.

What Happened: Nadella’s visit to Indonesia, Thailand, and Malaysia will focus on Microsoft’s AI-related plans in the region, reported The Wall Street Journal on Thursday.

The trip is scheduled to take place after a recent visit by Apple Inc CEO Tim Cook, who expressed interest in investing in manufacturing in Indonesia.

Microsoft has a long-standing relationship with Southeast Asia, a region experiencing a surge in demand for data centers and advanced technologies to drive online commerce, digital transactions, and disruptive tech startups.

The company’s Azure cloud-computing unit, which competes with Amazon, Google, and Alibaba in the region, opened its first Southeast Asia data center in Singapore in 2010.

Analysts anticipate substantial regional demand for AI-powered technology, which has already contributed to Microsoft’s bottom line through its partnership with OpenAI, the company behind ChatGPT. Microsoft has invested around $13 billion in OpenAI to secure a 49% stake in the startup’s for-profit arm, positioning itself as a major player in the AI race.

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Azure drives Microsoft’s AI strategy and a series of AI software assistants called Copilot, powered by the same technology behind ChatGPT.

The company’s enthusiasm for AI has continued to drive demand for its software and cloud services, with the Azure business growing 31% from a year earlier in the January-March quarter.

Why It Matters: Nadella’s visit to Southeast Asia comes on the heels of a strong demand for Azure, particularly in the field of artificial intelligence (AI). During the third-quarter earnings call, Nadella highlighted Azure as a go-to platform for AI projects, which has significantly contributed to acquiring new customers.

Microsoft’s third-quarter revenue increased 17% year-over-year to $61.9 billion, which beat the consensus estimate of $60.804 billion, according to Benzinga Pro. The tech giant reported quarterly earnings of $2.94 per share, which beat analyst estimates of $2.82 per share. Microsoft has now beat analyst estimates on both the top and bottom lines in five consecutive quarters, according to earnings data from Benzinga Pro.

On the same day, Nadella announced the company's record-breaking gaming performance and its expansion to Nintendo Switch and Sony PlayStation. The CEO also highlighted the successful addition of Diablo 4, the first Activision Blizzard title to the Game Pass service. Subscribers played over 10 million hours within the first 10 days, making it one of Microsoft’s biggest first-party Game Pass launches ever.

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Microsoft CEO Satya Nadella. Photo by WEF on Flickr