Artificial intelligence (AI) is one of the most significant opportunities to come along in decades, and many companies are already successfully tapping into it. One tech juggernaut that's accelerating its growth thanks, in part, to AI's rise is Microsoft (NASDAQ: MSFT).

Microsoft sprinted ahead of some of its AI rivals because of its early investments in ChatGPT creator OpenAI, and the company's fast-growing cloud-computing services business will likely continue to benefit for years as AI expands.

Are You Missing The Morning Scoop? Breakfast News delivers it all in a quick, Foolish, and free daily newsletter. Sign Up For Free "

Here's why Microsoft is a smart place in which to invest $1,000 right now.

How Microsoft is tapping into AI's growth

Microsoft has invested nearly $14 billion to date in OpenAI, giving the company access to some of the most advanced AI available. The tech giant was quick to integrate versions of ChatGPT into everything from its Office 365 software used by millions of users worldwide to its Azure cloud computing services.

And it's already paying off. Microsoft said on its first-quarter earnings call that 70% of Fortune 500 companies now use its Microsoft 365 Copilot AI and, more importantly, that its AI businesses are on track to have an annual revenue run rate of $10 billion.

Companies of all sizes are using Microsoft's Azure Open AI tools to build their own Copilots and AI chatbots, and management said recently that usage of these features has more than doubled over the past six months.

Additionally, revenue from the company's Azure cloud services rose 33% in fiscal 2025's Q1 (which ended Sept. 30). This matters for Microsoft's long-term prospects because the company is the second-largest cloud computing company in the world, with 20% of the market.

Cloud computing investments are expected to soar over the next few years as companies spend heavily on building AI-powered cloud systems, the results of which will generate an estimated $2 trillion in revenue for cloud companies by 2030, according to Goldman Sachs.

Microsoft has an AI opportunity its competitors don't have

It's worth mentioning that the AI space will get increasingly competitive in the coming years. Amazon has integrated AI into its cloud computing services, and Apple and Alphabet offer similar consumer-facing AI features in their software.

But Microsoft's large investment in OpenAI means it will continue to have access to some of the best AI features available. And, just as importantly, The Wall Street Journal recently noted that after OpenAI pays about $194 million of its profits to its first investors, Microsoft will then receive 75% of OpenAI's profits until its initial investment is repaid.