Microsoft cloud revenue accelerates as spending growth cools
Microsoft's cloud revenue growth increased 40% in the March quarter, while its capital expenditure rose 49% to $31.9 billion, less than Wall Street's expectations. The results may ease fears that Microsoft's AI investments are not paying off.
Microsoft's cloud revenue growth accelerated in the March quarter as its Azure cloud-computing unit revenue jumped 40%. The company's capital expenditure rose 49% to $31.9 billion, below Wall Street's expectations of $34.90 billion. Microsoft has been investing heavily in AI infrastructure, with major cloud players on track to spend over $600 billion this year. The company has added Anthropic's technology to its cloud service and products like Copilot, and landed a major Copilot rollout with Accenture. Microsoft also overhauled its OpenAI deal, locking in a 20% cut of the startup's revenue through 2030. The move may free up cloud capacity for Microsoft, which has blamed shortages for holding back revenue growth.
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