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Microsoft's Billion Dollar AI Business

Tom Tunguz

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. But the story in this quarter’s reports is AI.

AI Search 201
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The 4 Questions Startups Should Ask Themselves about Building with Generative AI

Tom Tunguz

There are 4 questions a startup should ask themselves about building a startup that uses generative AI. The narrative is : AI is a massive platform change that Goldman Sachs projects will increase GDP 300x more than the PC. There are 4 questions startups should ask themselves about building with generative AI.

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How Shopify Implements AI Across Sales and Product with Mike Tamir, Head of AI at Shopify, and Rudina Seseri, Managing Partner at Glasswing Ventures

SaaStr

At SaaStr AI Day , Mike Tamir, Head of AI at Shopify, and Rudina Seseri, founder and Managing Partner at Glasswing Ventures, level-set about where we are in the cycle for Enterprises adopting AI and the critical work being done at Shopify to leverage AI and solve real problems. The future of Enterprise is “Ambient AI.”

AI Search 219
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Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Tom Tunguz

" As with many other companies reporting strength in the market, AI & unstructured data workloads are fueling growth. “I don’t even hear the words AI and budget in the same sentence.” “Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter.

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16 Changes to the Way Enterprises Are Building and Buying Generative AI

Andreessen Horowitz

Generative AI took the consumer landscape by storm in 2023, reaching over a billion dollars of consumer spend 1 in record time. Can these startups actually make any money? Budgets for generative AI are skyrocketing. Leaders are starting to reallocate AI investments to recurring software budget lines. Isn’t this all hype?

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Signs We've Touched the Bottom

Tom Tunguz

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. The desire for AI is broad. Yesterday, Microsoft & Google announced earnings.

Azure 202
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Microsoft as a Mirror - What We Can Expect for SaaS in 2023

Tom Tunguz

We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Segment Expected Growth Productivity 12% Office Commercial 6% Office On-Premise -25% LinkedIn 5% Dynamics 13% Intelligent Cloud 18% Azure 26% Server -3% Services -3% 2. At some point, the optimizations will end.

Azure 242