Microsoft's Azure Cloud Soars with AI-Powered Growth

Microsoft's Azure cloud business reported impressive growth, surpassing revenue expectations and reaching over $75 billion annually. This growth is attributed to significant investments in AI, positioning Microsoft near market leader Amazon Web Services. Despite investor concerns, Microsoft's AI strategies continue to attract substantial business and sales increases.


Devdiscourse News Desk | Updated: 31-07-2025 02:42 IST | Created: 31-07-2025 02:42 IST
Microsoft's Azure Cloud Soars with AI-Powered Growth
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Microsoft's Azure cloud-computing division has recorded another outstanding quarter, surpassing revenue expectations driven by its strategic investments in artificial intelligence. The software giant disclosed that Azure's annual sales topped $75 billion for the first time, pushing shares up 7% in after-hours trading.

While Microsoft's cloud business still trails Amazon Web Services, reaching $107.56 billion last fiscal year, the new revenue figures suggest that the Seattle-based company's investments are yielding substantial returns. Investors, like Dave Wagner from Aptus Capital Advisors, believe the disclosure underscores the justification for Microsoft's hefty spending.

The earnings reveal also highlighted a surge in Microsoft's capital expenditure toward longer-lived assets, such as data centers, to address AI demand. Despite concerns over its partnership with OpenAI, Microsoft continues to expand its AI capabilities through collaborations with entities like xAI, Meta, and Mistral.

(With inputs from agencies.)

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