The Microsoft Earnings report released today exceeded Wall Street’s expectations. The company’s revenues increased to $65.59 billion (16% increase), led by strong growth in its Azure cloud computing platform. Despite the good news, share prices tumbled by more than 5%.
In the Earnings report, Microsoft warned that they would be stepping up investment on AI infrastructure. This prompted worries within investors that profitability in the next quarter would decrease.
Like other tech giants, Microsoft is rushing to increase investments in AI infrastructure to secure a more dominant position in the space. This has been reflected by the investment doubling over the last year. CFO Amy Hood stated the spending is a result of increase “AI demand signals”, and will “create an increase in available AI capacity”.
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