Microsoft cloud growth fails to ease investors’ AI concerns
Microsoft's cloud business reported a 39% revenue gain, narrowly beating analyst estimates, but investors remained concerned about the company's AI growth. Microsoft's AI business has passed an annual revenue run rate of $37 billion, more than doubling compared to the prior year.
Microsoft's cloud business grew 39% in the fiscal third quarter, beating analyst estimates. The company's Azure unit reported revenue growth, with 20 million customers now paying for Copilot, its flagship AI application. Microsoft has been integrating AI into its cloud services, but may be struggling to keep up with demand due to data centre capacity constraints. Capital expenditures were $31.9 billion, less than the average analyst estimate. Microsoft's AI business has passed an annual revenue run rate of $37 billion, more than doubling compared to the prior year. The company's office software revenue grew 17% to $35 billion, exceeding Wall Street's estimate.
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