Microsoft's GitHub Copilot Drives Significant Revenue Growth and Adoption

Satya Nadella Says Microsoft's Copilot Drives 40% Of GitHub's Revenue Growth: We Are Also 'Enabling Anyone To Use Natural Language To Create Apps...' - Microsoft (NASDAQ:MSFT)

Microsoft Corporation MSFT on Tuesday revealed that its AI-powered developer tool, Copilot, has played a significant role in GitHub's revenue growth. What Happened: During the company's fourth-quarter earnings call, Microsoft CEO Satya Nadella said that Copilot has been adopted by over 77,000 organizations, marking a 180% increase year-over-year. This has led to GitHub's annual revenue run rate hitting $2 billion, with Copilot accounting for over 40% of GitHub's revenue growth this year. The CEO also spoke about the integration of generative AI across the Power Platform. "We are also integrating generative AI across Power Platform, enabling anyone to use natural language to create apps, automate workflows, or build a website," he stated. See Also: Microsoft's Windows Reportedly Warns Users To Backup Their Data In The Cloud To Have 'Peace Of Mind' -- But At What Price? Over 480,000 organizations have used AI-powered capabilities in Power Platform, marking a 45% increase quarter-over-quarter. Nadella further noted that Copilot for Microsoft 365 is becoming a daily habit for knowledge workers, transforming work, workflow, and work artifacts. The number of people who use Copilot daily at work nearly doubled quarter-over-quarter. When Nadella was asked about the potential of Copilots to replicate the productivity gains for the broader population of knowledge workers, he affirmed that the design system of GitHub Copilot is being replicated inside of M365 Copilot. "We think of this as really a new design system for knowledge and frontline work to drive productivity, which would be very akin to what has happened in software engineering," he stated. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Microsoft has also added agent capabilities to Copilot. New Team Copilot can facilitate meetings, and create and assign tasks. With Copilot Studio, customers can extend Copilot for Microsoft 365 and build custom copilots that proactively respond to data and events using their own first and third-party business data. Microsoft's Q4 financial results highlighted a revenue beat with a total of $64.7 billion, up 15% year-over-year. This exceeded the Street consensus estimate of $64.36 billion, according to data from Benzinga Pro. Price Action: At the time of writing, Microsoft shares have fallen 2.81% to $411.05 in after-hours trading. The company closed the regular session on Tuesday at $422.92, a decrease of 0.89%. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Mark Zuckerberg Gets Triggered By Closed AI Models At SIGGRAPH 2024, Drops F-Bomb While Talking With Nvidia CEO Jensen Huang: 'There Goes Our Broadcast Opportunity' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image Created On MidJourney Market News and Data brought to you by Benzinga APIs

Paytm, H&M, FedEx, and BBVA among organizations adopting GitHub Copilot

Copilot is driving GitHub growth, and all up, GitHub's annual revenue run rate is now USD 2 billion, stated Nadella. This significant milestone underscores the creativity, ingenuity, and resilience of the GitHub team, known as Hubbers, Dhomke said in the post and noted that the scale of product disruption and commercial success achieved reflects GitHub's commitment to its community and its capacity to reinvest in them continually. With more than 100,000 generative AI projects created on GitHub last year, the platform remains at the forefront of AI innovation. The earnings report further noted that "Copilot accounted for over 40 per cent of GitHub's revenue growth this year." While GitHub celebrates its business success in the age of AI, the journey began with a simple yet profound vision: to enhance developer happiness, the CEO's post said. GitHub Copilot was conceived in late 2020, well before the AI hype, with the goal of alleviating mundane tasks for developers, allowing them to focus on what they love. This strategic focus on developer satisfaction has proven to be a winning formula. Dhomke emphasized the long-term vision for the platform: "From building AI applications with industry-leading models, to coding in natural language with Copilot Workspace, to automatically securing code with Autofix - we will continue to democratize access to AI technologies to generate a groundswell of one billion developers on GitHub. By doing so, we will enable 10 per cent of the world's population to build and advance breakthroughs that will accelerate human progress for all." As GitHub continues to evolve, companies like Paytm would play a crucial role in its ecosystem, leveraging innovative tools like Copilot to drive efficiency and growth. This collaborative effort not only boosts the productivity of developers worldwide but also accelerates technological advancements that benefit society as a whole. (ANI)