Microsoft beats expectations, but AI concerns force shares down [Video]

Microsoft delivered solid quarterly results on Wednesday, beating analyst expectations with revenue jumping 16 percent to $65.6 billion, but questions were raised about the company’s big spending on the AI boom.

The tech giant reported net income of $24.7 billion for the quarter ending September 30, marking an 11-percent increase from the same period last year. Earnings per share rose 10 percent to $3.30.

The company attributed the solid performance to robust growth in its cloud computing and artificial intelligence businesses.

“AI-driven transformation is changing work… and workflow across every role, function, and business process,” said Microsoft CEO Satya Nadella, adding that the company was winning new customers through its AI platforms and tools.

The Redmond-based company has been at the forefront of the generative AI revolution, largely thanks to its partnership with OpenAI, the …