microsoft and openai partnership expected to enhance azure sales potential

Microsoft Corporation, a global leader in operating systems and software development, is set to boost its Azure sales through its collaboration with OpenAI, as per UBS.

The company's net sales are primarily driven by operating systems and application development tools, which account for 49.4% of total revenue. Key products in this segment include Azure, SQL Server, and Windows Server.

Additionally, Microsoft generates 25% of its revenue from cloud-based software applications, including Microsoft 365 and Dynamics 365, while video game hardware and software sales, primarily from Xbox, contribute 8.8%. Business services and sales of computers, tablets, and accessories make up smaller portions of the company's revenue, at 3.1% and 1.9%, respectively.

Notably, the United States represents 50.9% of Microsoft's net sales, highlighting the company's strong domestic market presence.

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