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Microsoft is making lots of money from LinkedIn Premium — and users like its AI tools

LinkedIn sign on its headquarter building in California
LinkedIn offers AI tools to premium users.Smith Collection/Gado
  • LinkedIn generated $1.7 billion from premium subscriptions last year.

  • COO Dan Shapero said signups were boosted by LinkedIn's AI tools.

  • LinkedIn said more AI features will be added to the Microsoft-owned platform.

LinkedIn revealed how much revenue it makes from premium subscriptions for the first time since it was bought by Microsoft.

The job-networking platform announced Thursday that it made $1.7 billion from its premium subscribers in 2023.

The number of subscribers rose 25% year-on-year, fuelled by its AI tools.

LinkedIn COO Dan Shapero said in a post that more than 70% of its premium users are using its AI tools to help write posts and comments and for profile recommendations.

"Early tests also show 90% of subscribers with access to our AI-powered job experience find it useful," he said.

Microsoft revealed in January that LinkedIn's revenue had risen by 9% in the last quarter while membership growth had accelerated for more than two years.

It has not said how much revenue LinkedIn generated since Microsoft bought the company for $26.2 billion in 2016.

LinkedIn's "Premium Career" and "Premium Business" plans cost $29.99 and $59.99 monthly.

Shapero, who's been at LinkedIn since 2008, also said more AI features were on the way. As Business Insider previously reported, Microsoft has been striving to roll out AI tools, with senior leaders wanting employees to be "scrappy" in their approach to engineering.

"Expect to see more updates from us as we look to help you achieve more in your career, your business, or your job search, and with the help of AI we can further power your success," Shapero said.

LinkedIn laid off more than 1,400 workers in two rounds of cuts in May and October last year.

Some staff found out about the October layoffs earlier than planned when a mysterious list of about 500 names was posted on the anonymous workplace forum Blind the weekend before the layoffs were announced.

LinkedIn's HR team created a list of the names on GroupID, a third party system that allows the company to create distribution lists, called OctoberUpdate, which was then leaked on Blind.

LinkedIn didn't immediately respond to a request for comment from Business Insider, made outside normal working hours.

Do you work for LinkedIn or have insight to share? Contact this reporter from a non-work email at jmann@businessinsider.com

Read the original article on Business Insider