AI efficiency accelerates exponentially, as stated by Microsoft CEO, doubling its capabilities every six months.
In the realm of technology, the once-ubiquitous Moore's Law, first put forth by Gordon Moore in 1965, has long served as the unofficial barometer of progress. This principle predicted the doubling of transistors in microchips approximately every two years, setting the pace for technological advancements in computing with clockwork precision.
However, the realm of artificial intelligence (AI) is markedly different, with progress that is often elusive to measure. Unlike microchips, AI's benchmarks of progress are not exclusively tied to transistors. Instead, they are defined by the models that shape this ever-evolving field.
In this regard, Microsoft CEO Satya Nadella shares an optimistic perspective. In a recent interview, he asserted that the company's AI models are not only maintaining this pace of progress, but are exceeding expectations in terms of performance. Remarkably, Microsoft is notching these advancements in mere months instead of the traditional two-year cycle of Moore's Law.
Following the release of the company's Q3 2025 earnings report, Nadella shared these insights on a popular platform. He highlighted that Microsoft's models are doubling in performance every six months, fostering smarter, swifter, and more finely-tuned AI than ever before.
The company's success is evident in its Q3 2025 earnings report. Microsoft reported a strong performance almost across the board, with a total revenue of $70.1 billion—an increase of 13% year-over-year. The Intelligent Cloud segment, which includes the Azure platform, saw a particularly robust growth of 21%. Microsoft Copilot usage also skyrocketed, with a 35% increase quarter-over-quarter, underscoring the soaring popularity of the company's AI services.
This growth can be attributed, in part, to Microsoft's strategic partnership with OpenAI. Although Microsoft lost its exclusive cloud provider status for OpenAI in January, the investment has continued to pay off. The partnership has enabled Microsoft to host OpenAI's workloads and pave the way for future collaborative developments.
Looking ahead, Microsoft's ambitious plans in AI are centered on enhancing AI capabilities, strategic partnerships, and integrating AI across various products and services. Additionally, the company has announced plans to invest $80 billion in data centers, further solidifying its position as a major player in the AI sphere.
Yet, the question remains: Can this breakneck pace be sustained, especially given the ambitious plans for investment? While Moore's Law experienced occasional tapering, it took decades to become evident. Nadella's proposed trajectory, if we can call it that, is a candle that burns four times as bright—and potentially just as quickly.
In other Microsoft news, updates to Windows 11, Word, and the slow demise of Windows 10 were also announced.
[Source: Microsoft's Q3 2025 Earnings Report; Satya Nadella's X platform interview]
- The pace of progress in Microsoft's AI models exceeds the traditional two-year cycle of Moore's Law, doubling in performance every six months.
- Microsoft's AI services, such as Microsoft Copilot, are experiencing a significant increase in usage, with a 35% quarter-over-quarter increase.
- The company's strategic partnership with OpenAI has enabled Microsoft to host OpenAI's workloads and pave the way for future collaborative developments.
- Looking forward, Microsoft aims to enhance AI capabilities, form strategic partnerships, and integrate AI across various products and services.
- Microsoft has announced plans to invest $80 billion in data centers, aiming to strengthen its position in the AI sphere.
- The performance of Microsoft's overall business is evident in its Q3 2025 earnings report, which reported a total revenue of $70.1 billion—an increase of 13% year-over-year.
