Skip to main content Tom's Guide Tom's Guide Search Tom's Guide View Profile Newsletters Best Picks Entertainment Galaxy Z Fold 7 Switch 2 Restock Best laptops Wordle Today Best Mattress Recommended reading Microsoft is all in on AI at Build 2025: 3 things you need to know Anthropic CEO claims AI will cause mass unemployment in the next 5 years — here's why Microsoft study reveals the 40 jobs AI is most likely to impact — and 40 that are safe (for now) Microsoft Build 2025: All the big AI news announced Microsoft and xAI's Grok partner up — here's why that could be controversial Microsoft reportedly 'struggling' to convince companies to buy Copilot — yup, employees prefer ChatGPT Meta’s new 'Superintelligence' team could upend the entire AI industry — here's why OpenAI should be worried In the wake of Microsoft layoffs, shareholders win as the company reports $27 billion profit and becomes only the second company worth $4 trillion Scott Younker 31 July 2025 Guillotines may be in order. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Microsoft) In spite of (or perhaps more accurately because of) recent mass layoffs at Microsoft, the company is now valued at $4 trillion, only the second company to hit that valuation on the stock market after Nvidia. As we enter the dog days of summer, many companies are reporting their earnings for the previous quarter. Microsoft is among them and according to its latest earnings call, the tech giant hauled in a Scrooge McDuck-esque $27.2 billion in net income, up 24% from the same period last year. And it can all largely be blamed on AI and Azure, Microsoft's cloud computing platform where the company is heavily investing in AI while it remains the tech industry's obsession du jour. You may like Microsoft is all in on AI at Build 2025: 3 things you need to know Anthropic CEO claims AI will cause mass unemployment in the next 5 years — here's why Microsoft study reveals the 40 jobs AI is most likely to impact — and 40 that are safe (for now) "Cloud and AI is the driving force of business transformation across every industry and sector," CEO Satya Nadella said in the report. "We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads." These are numbers and business wins that won't be appealing to the more than 9,000 people that were laid off by Microsoft in the last month across multiple sectors of the business. Especially after Nadella's inane comments about AI and the layoffs. "This is the enigma of success in an industry that has no franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding," Nadella wrote in a company blog. "But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before." Sign up to get the BEST of Tom's Guide direct to your inbox. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. According to the financials revenue was up for Microsoft across the board, including in its Xbox, Windows, Microsoft 365 and LinkedIn divisions—just not as much as Azure cloud and AI. As GamesRadar reports, the company had a choice to cut about four percent of its workforce or reduce some spending on AI. It's obvious which way that axe fell, now that Microsoft has laid off roughly 9,000 people in the last few months and roughly 15,000 so far this year. Now, investors who don't even work for the company are reaping the profits as Microsoft's AI bet appears to have paid off financially—at least in the short term. More from Tom's Guide Microsoft Authenticator is going to delete your passwords on Friday — what to do right now Microsoft’s Edge just got a major AI makeover — meet Copilot Mode Microsoft 365 apps are officially dying on Windows 10 — here's what we know Today’sMacBook deals Apple 13" MacBook Air M4 (2025) See all prices Deal ends Sat, Aug 9, 2025 Apple MacBook Pro 14-inch M4 (2024) $1,399Preorder See all prices Apple 15" MacBook Air M4 (2025) See all prices Deal ends Sat, Aug 9, 2025 Apple MacBook Pro 16-inch M4 (2024) $1,759View See all prices Apple Macbook Air (M1 2020) $648.99View See all prices We check over 250 million products every day for the best prices See more AI News Scott Younker Social Links Navigation West Coast Reporter Scott Younker is the West Coast Reporter at Tom’s Guide. He covers all the lastest tech news. He’s been involved in tech since 2011 at various outlets and is on an ongoing hunt to build the easiest to use home media system. When not writing about the latest devices, you are more than welcome to discuss board games or disc golf with him. He also handles all the Connections coverage on Tom's Guide and has been playing the addictive NYT game since it released. You must confirm your public display name before commenting Please logout and then login again, you will then be prompted to enter your display name. Microsoft is all in on AI at Build 2025: 3 things you need to know Anthropic CEO claims AI will cause mass unemployment in the next 5 years — here's why Microsoft study reveals the 40 jobs AI is most likely to impact — and 40 that are safe (for now) Microsoft Build 2025: All the big AI news announced Microsoft and xAI's Grok partner up — here's why that could be controversial Microsoft reportedly 'struggling' to convince companies to buy Copilot — yup, employees prefer ChatGPT Latest in AI ChatGPT chats are showing up in Google Search — how to find and delete yours AI models are secretly messaging each other — here’s why that’s a big problem Mark Zuckerberg says AI superintelligence is 'now in sight' — here's what Meta thinks that means for you Amazon-backed Showrunner launches “Netflix of AI” platform — and you can star in your own show I cover ChatGPT for a living — here's 7 genius prompts everyone should try Tom's Guide Awards 2025: Our favorite AI tools and gadgets Latest in News Advance Auto Parts data breach could pay out up to $5,200 — see if you qualify Ford promises a 'Model T Moment' in August with a 'breakthrough electric vehicle' ChatGPT chats are showing up in Google Search — how to find and delete yours Mark Zuckerberg says that those not wearing AI smart glasses in the future will be at a 'pretty significant cognitive disadvantage' Qualcomm announces Xiaomi will have the first phone featuring the next Snapdragon 8 Elite Jason Momoa reveals shocking transformation ahead of 'Dune: Part Three' LATEST ARTICLES ChatGPT chats are showing up in Google Search — how to find and delete yours Ford promises a 'Model T Moment' in August with a 'breakthrough electric vehicle' I scoured Nordstrom's Anniversary Sale — here's 7 luxury deals I'm shopping from Ugg, Le Creuset, Ray-Ban and more I'm a VPN expert — these are the top three VPN services I recommend Mark Zuckerberg says that those not wearing AI smart glasses in the future will be at a 'pretty significant cognitive disadvantage' Tom's Guide is part of Future US Inc, an international media group and leading digital publisher. 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