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Insider

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Microsoft CFO hypes up AI agents in an internal memo about Q3 earnings

  • Microsoft CFO Amy Hood reflected on the company's 50th anniversary and promoted AI agents in a memo about the Q3 earnings.
  • Hood highlighted AI agents Researcher and Analyst, based on OpenAI models, as a glimpse of future innovations.
  • In the internal memo, Hood expressed excitement about the continuous advancements and encouraged employees to embrace new approaches.
  • Microsoft's stock increased by 6% in after-hours trading following the release of the Q3 financial report.

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VentureBeat

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UiPath’s new orchestrator guides AI agents to follow your enterprise’s rules

  • UiPath introduces a new platform for Agentic Automation, aiming to guide AI agents to operate within enterprise rules and workflows.
  • The company emphasizes that AI agents are not a new form of RPA but a tool integrated with RPA to enhance workflows.
  • UiPath's AI orchestration layer, Maestro, supervises the flow of information from agents to human employees and the automation layer, ensuring transparency and accountability in processes.
  • While some industry experts see agents as the future of automation, UiPath's approach combines human involvement with rules-based RPA to ensure reliability and prevent uncontrolled access to systems.

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Update on the Docker DX extension for VS Code

  • Docker and Microsoft have collaborated on a new Docker DX extension for Visual Studio Code to enhance support for developers building containerized applications.
  • The original Docker extension in VS Code is being migrated to the new Container Tools extension maintained by Microsoft for better container development experience directly in VS Code.
  • The new Docker DX extension introduces features like Dockerfile linting, image vulnerability remediation, Bake file support, and Compose file outline to streamline container development.
  • Upcoming developments include expanded Dockerfile checks, stronger security insights, and improved debugging and troubleshooting features. Users are encouraged to provide feedback for further improvements.

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Guardian

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Microsoft beats Wall Street expectations for fourth quarter in a row amid AI boom

  • Microsoft exceeded analyst expectations for the fourth quarter with revenue of $70.07bn and earnings of $3.46 per share, leading to a more than 5% jump in share value during after-hours trading.
  • The company has made substantial investments in artificial intelligence, committing around $80bn this fiscal year and holding a large stake in OpenAI, positioning itself as a leader in AI technology.
  • Microsoft's CEO, Satya Nadella, emphasized the significance of cloud and AI in driving business expansion, cost reductions, and growth.
  • The tech giant's heavy focus on AI is reflected in its strategic partnerships and investments, with executives predicting a future where a significant portion of code will be AI-generated.
  • Last quarter, Microsoft reported a 12% revenue increase and highlighted a 175% year-over-year growth in its AI business.
  • Azure, Microsoft's cloud computing service, surpassed analyst expectations with a 33% year-over-year revenue growth, contributing to the company's strong overall performance.
  • Microsoft's assurance to contest any potential orders to cease cloud operations in Europe amid trade policy uncertainties was highlighted, indicating a proactive legal stance.
  • While tech giants face economic downturn challenges and trade uncertainties, Microsoft has shown resilience, with its products and services being less affected by trade dependencies.
  • Shares of Microsoft have experienced a 7% decline since January, partly influenced by economic instability and competition from China-based developers, notably after the release of the DeepSeek AI app.

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Microsoft stock surges after hours after the company blows past Q3 estimates

  • Microsoft reported $70.1 billion in revenue and earnings per share of $3.46, surpassing analysts' estimates in Q3.
  • The surge in Microsoft's stock by over 6% in after-hours trading was driven by strong demand in Cloud services and AI infrastructure.
  • Microsoft's focus on AI and Cloud services has been highlighted by CEO Satya Nadella as essential for business growth and innovation.
  • The company is aiming to balance ambition with discipline as it pulls back on data center expansion and revolutionizes AI-based ad revenue.

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The Verge

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Microsoft reports strong cloud growth in Q3 earnings

  • Microsoft reported strong Q3 earnings with $70.1 billion in revenue and $25.8 billion in net income.
  • The revenue is up by 13 percent, and net income has increased by 18 percent, beating Wall Street expectations.
  • The main driver of revenue growth was the cloud sector, with Microsoft Cloud revenue reaching $42.4 billion.
  • Xbox hardware revenue declined by 6 percent, but overall gaming revenue at Microsoft is up 5 percent. Xbox content and services, including Game Pass, increased by 8 percent.

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Microsoft earnings press release available on Investor Relations website

  • Microsoft Corp. announced that its fiscal year 2025 third-quarter financial results are available on its Investor Relations website.
  • The company will host a conference call at 2:30 p.m. Pacific Time, with a live webcast accessible on Microsoft’s Investor Relations website.
  • Microsoft, with Nasdaq symbol “MSFT”, uses AI-powered platforms to offer innovative solutions for customers, aiming to empower every person and organization to achieve more.
  • For more information, financial analysts and investors can contact Microsoft's Investor Relations, while press inquiries should be directed to Microsoft Media Relations.

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Microsoft

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Microsoft Cloud and AI strength drives third quarter results

  • Microsoft Corp. reported strong third-quarter results for fiscal year 2025, with revenue reaching $70.1 billion, a 13% increase.
  • The company's operating income and net income also showed significant growth, with notable increases in constant currency.
  • Microsoft's Cloud and AI contributions played a vital role in driving business expansion and accelerating growth.
  • The third quarter saw Microsoft Cloud revenue of $42.4 billion, showing a 20% growth year-over-year.
  • Revenue highlights include increases in Productivity and Business Processes, Intelligent Cloud, and More Personal Computing sectors.
  • Microsoft's focus on Microsoft 365, Dynamics, Azure, and other cloud services led to substantial revenue growth.
  • The company returned $9.7 billion to shareholders through dividends and share repurchases during this quarter.
  • Microsoft's continuous innovation across products and services aims to enhance productivity and security for customers.
  • The company emphasizes environmental, social, and governance practices and plans for future advancements.
  • Microsoft's outlook and forward-looking guidance will be disclosed in the quarterly earnings conference call and webcast.

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MMO Business Roundup: Microsoft stonewalls ZeniMax union, Electronic Arts lays off hundreds

  • ZeniMax union workers accuse Microsoft of stonewalling bargaining negotiations, frustrating the ZeniMax Workers United-CWA union representatives.
  • Electronic Arts lays off up to 400 employees, impacting Respawn Entertainment and shelving two projects; including the departure of a writer post-debut of a character in Apex Legends.
  • Eric Barone, the developer of Stardew Valley, shifts focus to his next project Haunted Chocolatier after Stardew's successful 1.6 update.

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HRKatha

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Google overhauls performance ratings to sharpen focus on high achievers

  • Google is revamping its performance review and compensation system to reward high-performing employees more generously.
  • The changes include allowing more employees to receive the 'Outstanding Impact' rating, motivating them to exceed expectations.
  • Managers will have increased discretionary bonus budgets to reward top performers within the 'Significant Impact' category.
  • These adjustments aim to reinforce a culture of excellence at Google, aligning rewards with impact while keeping the changes budget-neutral.

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AI now writes a big chunk of code at Microsoft and Google — and it could be coming for even more at Meta

  • AI is increasingly used by big tech companies like Microsoft, Google, and Meta to write code, with Microsoft CEO Satya Nadella stating that AI writes up to 30% of code for some of its projects.
  • Google's CEO Sundar Pichai mentioned that over 30% of new code at Google is written by AI, and Meta's Mark Zuckerberg predicted that AI could handle half of Meta's developer work within a year.
  • Even companies like Salesforce are embracing AI for coding, with Marc Benioff mentioning that AI had increased engineering productivity by 30% and Microsoft's CTO Kevin Scott expecting that within five years, 95% of all code will be AI-generated.
  • While AI is being used to enhance coding efficiency, companies like Microsoft are considering job cuts aimed at middle managers and non-coders to increase the share of contributors who write code.

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AWS and Microsoft Scale Back Data Centers – Why Blockchain Is Now Key for AI

  • AWS and Microsoft are scaling back data center expansion plans for AI processing due to energy constraints in traditional centralized models.
  • The rise of decentralized AI is leading to increased utility of XRP in areas such as identity, liquidity, and decentralized compute systems.
  • Energy limitations highlight the need for decentralized, blockchain-based AI infrastructure like Aethir, enabling tapping into global idle computing power.
  • Ripple (XRP) is gaining significance in the AI-blockchain space with AWS and Microsoft's focus shifting towards more flexible technologies, with XRP being utilized in diverse areas beyond payments.

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Mastercard Launches ‘Agent Pay’ for AI-Led Commerce

  • Mastercard has launched Agent Pay, a program integrating payments into AI-driven commerce experiences.
  • Agent Pay introduces 'agentic tokens' for secure transactions through generative AI agents on consumer and business platforms.
  • Mastercard collaborates with Microsoft and others to explore new AI use cases and partners with payment processors like Braintree and Checkout.com.
  • The initiative enables consumers to use AI agents for purchases, helps businesses automate tasks, and includes safeguards for consumer protection.

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Satya Nadella says AI is now writing 30% of Microsoft’s code but real change is still many years away

  • Satya Nadella, CEO of Microsoft, revealed that AI is responsible for writing about 30% of the company's code.
  • The quality of AI-generated Python code is high, but it's not as good with writing in the C++ programming language.
  • Microsoft's AI-generated code percentage is on par with Google, suggesting both companies are making significant use of AI in code creation.
  • Nadella compared the rise of AI to the emergence of electricity and emphasized that real change will take many years to occur.

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iCAD to Integrate AI Breast Cancer Detection into Microsoft’s Precision Imaging Network

  • iCAD, Inc., a global leader in AI-powered cancer detection solutions, partners with Microsoft to integrate its mammography solutions into Microsoft's Precision Imaging Network.
  • The collaboration aims to provide advanced breast cancer detection tools to clinicians by leveraging Microsoft's cloud infrastructure and radiology platforms for seamless integration of iCAD's AI insights into clinical workflows.
  • The partnership allows iCAD's AI Breast Health Suite to be fully hosted on Microsoft's network, enhancing access to tools designed to improve breast health detection, clinical efficiency, and patient outcomes.
  • Through Microsoft's Precision Imaging Network, iCAD's AI tools for cancer detection and density assessment will be readily available to radiologists and physicians in diverse healthcare settings, streamlining diagnostic processes and enhancing efficiency.

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