How Do They Make Money?

According to Microsoft what they do is: "develop and support software, services, devices, and solutions". This means they are involved in both hardware and software. Their offering is very broad, they mention: "operating systems, cross-device productivity and collaboration applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. We also design and sell devices, including PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories."

So it's pretty clear that the main source of money for Microsoft is selling or licensing stuff to others. Depending on the product these others could be individual consumers or enterprise clients.

It also looks like AI is a big focus for the future. In section "Our Future Opportunity" it reads: "We are focused on helping customers use the breadth and depth of the Microsoft Cloud to get the most value out of their digital spend while leading the new AI wave across our solution areas." [bolding by me]. This for me indicates that Microsoft wants to be in the forefront of the new AI trend, this is not susprising given they have some stake in OpenAI.