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Microsoft has officially crossed the $4 trillion milestone in market value, becoming the second company to ever do so after Nvidia. The move follows a wave of investor confidence and a powerful earnings report. Nvidia was the first to pass the same milestone earlier this year.
The jump came after Microsoft reported strong results for the fourth quarter. Azure, its cloud division, brought in over $75 billion in annual revenue. This was the first time Microsoft broke out Azure's numbers in dollars. That figure reflected a 34 percent year-over-year increase, sending the stock up more than 5 percent.
CEO Satya Nadella praised the performance, calling Azure "central to the AI transformation." The Intelligent Cloud segment brought in $29.8 billion in just one quarter. Much of that was driven by demand for artificial intelligence.
Microsoft's ties with OpenAI have played a big role. Azure hosts OpenAI's models, including ChatGPT. In return, OpenAI's tools power Microsoft products like Copilot and Microsoft 365.
Since ChatGPT launched publicly in late 2022, Microsoft's stock has more than doubled. That rise is tied directly to its bet on AI.
Tensions with OpenAI have grown, however. The two companies have disagreed over ownership and direction. OpenAI's shift to a public-benefit structure added friction. Still, Microsoft is building its own AI models, including the Phi family and a new system called MAI-01.
The company plans to spend $80 billion on AI infrastructure this year. That's more than most competitors. At the same time, Microsoft faces fewer risks than companies like Apple, which deal with U.S. pressure to shift supply chains.
Microsoft will also end support for Windows 10 in October. That could boost demand for Windows 11 and related services.
An antitrust probe is underway. The FTC is reviewing Microsoft's ties with OpenAI, though no charges have been filed.
