Microsoft beats revenue expectations and invests a further €30bn in AI

Microsoft's Q3 earnings surpassed expectations with $77.7 billion in revenue and $30.8 billion in income. Azure cloud business thrived despite a recent outage, but investors focused on Microsoft's significant capital expenditures, particularly in AI and cloud infrastructure. Microsoft spent $35 billion on capital expenditures, with nearly half going to chips and data centers. The company's partnership with OpenAI was revised, with Microsoft securing commercial rights and a 27% stake in OpenAI's for-profit division. Despite strong cloud-driven revenue growth and AI assistant Copilot's expansion, Microsoft's stock dropped due to spending concerns and Azure outage questions.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.