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Roula Khalaf, the editor of FT, selects his favorite story in this week’s newsletter.
Microsoft has been struggling to meet the demand for artificial intelligence -related services, and has gained slower growth than Wall Street’s prediction and reduced the market value of $ 150 billion.
The Seattle -based software group on Wednesday has defeated the quarterly revenue and analysts for net income, but the cloud category, which is the largest profit driver, including the Azure Cloud Computing platform I missed my expectations slightly.
Despite the increase in AZURE’s AI service income 157 % year -on -year, Amy Hood, the highest finance officer, “continuous impact on the” continuous impact of Microsoft “in 2025. He said he was expecting to last. She said this would lift by the end of the accounting year.
The Microsoft’s cloud division as a whole has been lost in 21 % of profits from a year ago to $ 49 billion, and the $ 41.1 billion Bloomberg survey lost expectations.
The unfortunate result from the cloud unit was that almost 6 % of shares were sent on Thursday and wiped out more than $ 150 billion.
Group revenue in the quarter increased 12 % to $ 69.6 billion from the previous year. Prior to the average estimate of $ 23.5 billion, the Bloomberg survey was $ 24.1 billion, an average estimate of $ 23.5 billion.
Microsoft spent $ 22.6 billion in capital spending in the second quarter, doubling since the previous year. Earlier this month, the company stated that it would cost about $ 800 billion in this fiscal year ending on June 30 to build the data center in frustration necessary for training AI models and applications.
Bumper spending is concerned about swirling in Wall Street over Chinese deep seek. This claims that Microsoft can execute large US companies, such as Openai, which are supported by Microsoft.
Satya Nadella’s highest executive stated that DeepSeek has demonstrated the “real innovation”, including matching the performance of OPENAI’s O1 model.
“You can see that everything is commoditized and used widely, and the big beneficiary of such a software cycle is a customer,” he said.
Nadella’s lesson from the transition to cloud computing is that when companies outsource computer processing to external servers, demand increased as resources costs decreased. “Optimization means that it is much more ubiquitous,” he added.
Software giants are one of the main beneficiaries of the AI boom, with a rapid demand for cloud services, with a 13 billion dollar partnership promoting a small club of a company with more market value of Openai. The enthusiasm is increasing rapidly.
Openai models can be used by customers through Azure, supporting Microsoft’s Copilot Chatbot and its large language model.
Last week, the group stated that Startup would change the transaction structure with Openai to enable the use of rival cloud computing services. But it reserved the right to refuse.
This movement was planned to build at least $ 100 million AI infrastructure in the United States, as a part of a project called Stargate, with a cloud provider Oracle and Softbank in Japan. Microsoft is nominated only as a project technical partner.
“Their success is our success by all other commercial agreements,” Nadera mentioned in Microsoft’s profit sharing, applications and intellectual property rights, and the company is costly. He said he was working on optimization. “I don’t want to buy anything at once.”
Microsoft added 67 % of commercial demand for services in the quarterly quarterly promoted commitment from Openai.
