San Francisco, Apr 26 (IANS): Riding on its Cloud and the new AI business, Microsoft has reported $52.9 billion in sales, up 7 per cent with net income at $18.3 billion, which increased 9 per cent (year-on-year) in its quarter ended March 31.

Microsoft-backed OpenAI's ChatGPT has become a rage worldwide, which has the capabilities to transform many industries.

"The world's most advanced AI models are coming together with the world's most universal user interface -- natural language -- to create a new era of computing," said Satya Nadella, chairman and CEO, Microsoft.

"Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI," he said in a statement late on Tuesday.

Microsoft Cloud reported revenue of $28.5 billion, up 22 per cent year-over-year, said the company.

Revenue in Productivity and Business Processes was $17.5 billion and increased 11 per cent, while LinkedIn revenue increased 8 per cent.

However, sales in the 'More Personal Computing' segment was $13.3 billion and decreased 9 per cent and Windows OEM revenue decreased 28 per cent.

Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.