Microsoft becomes $4 trillion company: A $4 trillion mark is large by the standard of any country’s Gross Domestic Product (GDP), let alone a company’ market capitalsation. Only USA, China, Germany and India have $4 trillion-plus GDPs. But the US tech company Microsoft achieved the $4 trillion market capitalisation mark on Thursday after it reported its strong fourth-quarter results. 

The IT behemoth joined chipmaker giant Nvidia in the $4 trillion market capitalisation club. Jensen Huang-led Nvidia became the first company to hit the $4 trillion m-cap mark when its share rallied to an intraday high on July 9.

How Microsoft became $4 trillion company   

The company achieved the $4 trillion mark on the back of robust Q4 results on Thursday. In its Q4 earnings report, Microsoft said that its Azure business earned $75 billion last year. 

The company’s share price has reportedly soared by over 110 per cent since the launch of OpenAI’s (OPAI.PVT) ChatGPT in November 2022.

The tech giant uses Open AI across its businesses, including for Azure cloud services.  

Open AI uses Microsoft’s cloud infra to power its AI capabilities.

Microsoft and OpenAi have both benefited from this symbiotic relationship. 

While Microsoft’s Intelligent Cloud revenue, which also has Azure service as its part, grew to $29.8 billion in the fourth quarter, OpenAI has also reportedly earned $10 billion in recurring revenue. 

Microsoft is also getting stiff competition for its cloud services from Google and Amazon. 

But the company is opening other avenues for revenue generation. The company is set to end its Windows 10 support in October this year, a step that will boost Windows 11 sales. 

Among other revenue generation options may be Microsoft’s launch of AI features for its Copilot assistant across Windows, the Edge browser, and Microsoft 365 productivity suite.