Microsoft's Cloud Growth Slows, AI Payoff Delayed

Supraja

Microsoft’s Azure cloud growth slowed, with a 29% rise in the June quarter, below estimates.

Microsoft is increasing its AI infrastructure spending, with capital expenditures rising 77.6% to $19 billion in the fiscal fourth quarter.

The payoff from AI investments is expected to take longer than anticipated, impacting investor expectations.

AI services contributed 8 percentage points to Azure's revenue growth in the June quarter, up from 7 percentage points in the previous quarter.

Microsoft predicts Azure cloud growth will accelerate in the second half of fiscal 2025.

Read More Stories