Investors did not worry about the amount of money spent by large technology companies on artificial intelligence, and did not get much comfort from Microsoft when I reported their latest financial results on Wednesday.
In the last quarter, which ended on December 31, Microsoft maintained a fast driver to build databases to operate cloud computing and artificial intelligence. It has spent $ 22.6 billion on capital expenditures, or nearly twice up to the year.
Microsoft said it will spend about $ 80 billion in databases this fiscal year, which ends in June. It is running because he said he has no enough ability to meet customers’ demand for artificial intelligence services and cloud computing.
This spending came against the background of strong total growth in both profits and revenues for the technology giant. Revenue reached 69.6 billion dollars, an increase of 12 percent over the previous year. The profit increased by 10 percent, to 24.1 billion dollars. The results won the Wall Street expectations and Microsoft’s special forecasts.
“When artificial intelligence becomes more efficient and accessible, we will see more demand,” Satia Nadella, CEO of Microsoft, said in a call with investors.
Questions related to artificial intelligence spending between large technology companies became more urgent after the start of Chinese, Deepseek, and Wall Street with this week with The advanced artificial intelligence system that the company said was developed For a small part of the energy and costs of the leadership of the technology companies that they spent.
Microsoft was the first major cloud computing company reporting on the revelation of Deepseek, and its shares decreased by 5 percent in trading after working hours.
Growth in the leading cloud computing service in Microsoft, Azure, slows down to 31 percent, which is slightly less than Wall Street’s expectations. More than a third of this growth came from artificial intelligence. Investors were hoping that the growth of Azure Steam would have a greater ability to provide customers this year, but executives told investors that it might take up to the summer to get enough energy and operate it.
The company said that artificial intelligence sales exceeded an annual operating rate of $ 13 billion.
Microsoft’s artificial intelligence sales include selling access to systems created by ChatgPT, Openai, and providing computing energy when customers use Openai products directly from startup. Microsoft is the largest investor in OpenAi and has recently said that its financial ranking ends in 2030.
The company is working for more than a year to provide customers with access to artificial intelligence systems developed by Openai, and on Wednesday, it added a system from Deepseek to the catalog of artificial intelligence models. Last week, when Openai was announced $ 100 billion in Stargate project With Oracle and other partners, Microsoft said it re -negotiated with Openai.
Azure is no longer the only provider of Openai data centers to develop new systems. Microsoft now has DIBS first to spend on Openai’s infrastructure, but you can say no and set the priorities of its additional resources – if it has – elsewhere.
“On a day like today, it seems that” the bet “smart,” wrote in a memorandum of investors on Monday, amid the panic pan
Mr. Keirstead wrote that the provision of Deepseek added uncertainty in the value of Microsoft’s investments in Openai, but they can also help Microsoft and its peers to less spending on capital expenses, which is “generally good”.
Emmy Hood, Microsoft Finance President, told investors that the company will increase capital expenses in the coming fiscal year, but growth will be at a slower pace.
(The New York Times filed a lawsuit against Openai and Microsoft, claiming a violation of copyright for news content related to artificial intelligence systems. The two companies denied the claims of the case.)
In other parts of Microsoft, sales of online productivity to companies, including Excel, teams and word, have grown by 15 percent, except for currency fluctuations. About 5 per cent of qualified Microsoft 365 customers has been promoted to include Copilot, Microsoft Ai Companion, according to analysts in Bank of America.
Microsoft’s personal computing works were mainly flat, reaching $ 14.7 billion.
