Microsoft has revealed plans for a new $60 billion stock-buyback program as it looks to raise more funds for future investment and development.
The repurchase program has no expiration date and may be terminated at any time, according to the company’s statement
A partnership with OpenAI and investments into cloud technologies has ushered in a new era for Microsoft, which reported $75.5 billion in cash and equivalents as of June 30 2024, with free cash flow of $23.3 billion in the fiscal fourth quarter, “up 18% year-over-year reflecting higher capital expenditures to support our cloud and AI offerings.”
More investments to come
AI infrastructure is set to secure more investments in the near future, with the company already reporting a 77% rise in capital spending largely due to AI related endeavors.
Tech giants are facing huge pressure to produce returns from the recent AI, with Microsoft being one of the few companies to do so. Microsoft surpassed the $3 trillion market value mark, and is the second company to ever reach this level.
AI is certainly emerging as a driving force behind Microsoft's success, especially after the company integrated generative AI into a lot of core products, including its dedicated chatbot, Copilot. The projections are incredibly promising for the company, which could be set to take the title of the world's most valuable company from its current #2 spot.
Via Bloomberg
More from TechRadar Pro
- Check out our pick of the best free office software
- It's official - Copilot is taking over Microsoft 365
- Take a look at our best endpoint security choices
