Microsoft’s cloud growth accelerates, and so too does the spending
Source: Fortune ·
Software giant is one of the tech industry’s largest spenders in cloud computing.
From the source
Microsoft’s cloud business is humming even as its spending to build out its AI business continues to be high. The software giant’s first-quarter earnings report Wednesday showed ample demand for its AI services, as Microsoft races to put more computing capacity online and as other parts of its business, such as legacy software and gaming, lag. The Redmond, Wash.-based company said first-quarter revenue totaled $92.3 billion, up 19% year-over-year and above what Wall Street analysts expected. Its profit was $36.6 billion, also edging out analyst predictions. Its Azure cloud business grew by 48%, ahead of analyst estimates and a welcome sign for investors. The company’s shares were initially trading up more than 4% in after-hours trading. Microsoft investors have been eager to see Azure continue to grow at a high clip and for the company to prove that its AI bets, such as its Copilot assistant, are generating solid revenue. Both are important metrics because they show if Microsoft, and…