Microsoft Is Dramatically Boosting AI Investments as It Races to Keep Up With Demand

Microsoft is significantly boosting its AI spending, with capital expenditures surging to $34.9 billion in the first quarter, a stark increase from $24.2 billion in the previous quarter. This investment is primarily for expanding AI infrastructure, particularly for Azure, to meet the soaring demand for AI technology. Despite the substantial spending, Microsoft's strong results are promising, with earnings per share at $3.72 and a 38% year-over-year revenue increase to $77.7 billion. The Intelligent Cloud division, which includes Azure, saw a 28% revenue growth, beating analysts' expectations. Microsoft expects next quarter's revenue to be in line with or slightly higher than predictions, despite a minor dip in after-hours trading.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.