Microsoft announced Tuesday that it earned a net income of $21.9 billion on revenues of $62 billion in the quarter ending December 31, 2023. Those figures are up 33 percent and 18 percent, respectively, year-over-year (YOY) Intelligent Cloud: Azure, AI Microsoft's biggest business unit delivered $25.9 billion in revenue, up 20 percent YOY and driven primarily by its Azure cloud platform Azure revenues were up 30 percent in the quarter, 6 points of which Microsoft attributed to "AI services" Productivity and Business Processes: Microsoft 365 $19.2 billion in revenues, with growth of 13 percent YOY Office Commercial revenues were up 15 percent More Personal Computing: Xbox, Windows Revenues of $16.9 billion, up 19 percent YOY Gaming revenues surged 49 percent (44 points from Activision Blizzard) Xbox hardware revenues inched up by 3 percent Windows revenues from PC makers grew 11 percent in the quarter Windows Canary: Voice Clarity comes to more PCs, and Microsoft previews new/old Windows Setup first-run experience Dev: Minor bug fixes only Beta: Snap Layout suggestions, new settings in Widgets, and you can now revert to stable (!!) Microsoft 365 Teams goes down for the count AI Microsoft adds deepfake guardrails to Designer AI. So, this wasn't there before now? FTC is investigating Microsoft/OpenAI and other Big Tech AI partnerships Xbox Microsoft can finally bring Xbox Cloud Gaming to the iPhone (and Fortnite is coming back to the iPhone in the EU) 1900 layoffs at Activision Blizzard, Zenimax, and Xbox Tips and Picks Tip of the week: Upgrade to passkeys App pick of the week: Insync RunAs Radio this week: Software Licensing with Mary Jo Foley Brown liquor pick of the week: Dailuaine 16 Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell Download or subscribe to this show at https://twit.tv/shows/windows-weekly Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Check out Paul's blog at thurrott.com The Windows Weekly theme music is courtesy of Carl Franklin. Sponsor: GO.ACILEARNING.COM/TWIT