Investors worried about how many large technological companies are spending on artificial intelligence they did not get much relief from Microsoft when he reported his latest financial results on Wednesday.
In its most recent quarter, which ended on 31 December, Microsoft maintained its quick push to build data centers to feed cloud computing and artificial intelligence. He spent $ 22.6 billion in capital expenses, almost double a year earlier.
Microsoft said that it would spend about $ 80 billion on this year this year, which ends in June. He is sprint because he said that he does not have enough ability to satisfy customers’ demand for artificial intelligence and cloud computing services.
That expense was against the background of the solid overall growth both in profits and in revenue for the technology giant. Revenue reached $ 69.6 billion, an increase of 12 % compared to the previous year. The profit increased by 10 percent, to $ 24.1 billion. The results beat Wall Street’s expectations and Microsoft’s predictions.
“As the IA becomes more efficient and accessible, we will see more request exponentially,” said Satya Nadella, CEO of Microsoft, in a call with investors.
The questions about artificial intelligence expenditure among large technological companies have become more urgent after a Chinese start-up, Deepseek, surprised Wall Street this week with an advanced artificial intelligence system that the company said was developed for a fraction of Power and costs compared to the main technological companies had spent.
Microsoft was the first large cloud computing company that reported financial results from the revelation of Deepseek, and its actions decreased by about 5 percent in After Hour trading.
The growth in sales of the peak cloud computing service of Microsoft, Azure, slowed down 31 percent, slightly below the Wall Street expectations. More than a third of that growth came from artificial intelligence. Investors hoped that Azure’s growth will collect Steam once Microsoft has more ability to offer customers this year, but the managers have told investors who could request up to the summer to obtain sufficient and functioning ability.
The company has declared that artificial intelligence sales exceeded an annualized execution rate of $ 13 billion.
Microsoft’s artificial intelligence sales include access to access to the systems created by the creator of Chatgpt, Openai and providing IT energy when customers use Openii products directly from the start. Microsoft is the largest investor of Openai and recently said that their financial agreement expires in 2030.
The company for more than a year has been working to provide customers with access to artificial intelligence systems as well as those developed by Openi and on Wednesday has added a deepseek system to its catalog of AI models. And last week, when Openai announced the Stargate project of $ 100 billion with Oracle and other partners, Microsoft said she had renegotiated her agreement with Openai.
Azure is no longer the only data center supplier for Openi to develop new systems. Microsoft now has the first Dibs to spend in an infrastructure for Openi, but he can say no and give priority to his extra resources – if he has them – elsewhere.
“On a day like today, that” bet “seems intelligent”, Karl Keirstead, UBS analyst, wrote in a note to the investors on Monday, among the panic of Deepseek.
Deepseek progress added uncertainty to the value of Microsoft’s investment in Openni, but they could also help Microsoft and its equal to spend less for capital account expenses, which is “generally a good thing”, wrote Keirstead.
Amy Hood, head of Microsoft’s finances, told the investors that the company would have increased the capital expenses in the next tax year, but the growth would have been at a slower pace.
(The New York Times sued Openii and Microsoft, claiming the violation of the copyright of news related to artificial intelligence systems. The two companies denied the statements of the cause.)
In other parts of Microsoft’s business, the sales of its online productivity tools for companies, including Excel, teams and words, grew by 15 percent, excluding currency fluctuations. About 5 % of the commercial customers of Microsoft 365 eligible updated to include Copilot, to Microsoft’s Companion, according to the analysts of the Bank of America.
Microsoft’s personal calculation activity was essentially flat, at $ 14.7 billion.