What were the key factors behind Microsoft's revenue cost increase in Q1 2025?

The key factors behind Microsoft's revenue cost increase in Q1 2025 are as follows:

1. **Revenue Growth**: Microsoft's revenue continued to grow, with over $245 billion reported for fiscal 2024. The company's market cap reached $3.1 trillion, indicating a strong financial performance.
2. **Investments in AI**: Microsoft is investing heavily in AI, both through its own research and development and through its partnership with OpenAI. This strategic investment is likely contributing to the company's revenue growth and increased costs.
3. **OpenAI's Revenue Growth**: OpenAI, backed by Microsoft, is planning to triple its revenue this year to $12.7 billion. The growth of OpenAI's revenue can be attributed to the increasing demand for AI-driven software solutions, which is likely benefiting Microsoft as well.

In conclusion, Microsoft's revenue cost increase in Q1 2025 can be attributed to its continued revenue growth, significant investments in AI, and the growth in revenue of its backed company OpenAI.