Microsoft Q1 Profit Tops Estimates On AI, Cloud Boom; $35 Bn Capex Spooks Wall St

Abstract

Azure and other cloud services revenue surged 40 per cent, leading growth within the Intelligent Cloud segment, which posted USD 30.9 billion in revenue, up 28 per cent. The More Personal Computing division, which includes Windows, Xbox, and search advertising, inched up 4 per cent to USD 13.8 billion, helped by a 6 per cent rise in Windows OEM and Devices and a 16 per cent increase in search and news advertising. Adding to the concern, key partner OpenAI, which relies heavily on Microsoft’s cloud infrastructure, has reportedly committed to purchase over USD 1 trillion in computing power, raising questions about how it plans to finance such an ambitious commitment.