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Microsoft’s A.I. Spending Continues to Rise as Profit Increases by 10%


In Microsoft’s latest financial results, the company reported strong overall growth in profits and revenue, with a focus on expanding data centers to support cloud computing and artificial intelligence. Despite concerns from investors about the high spending, Microsoft’s revenue reached $69.6 billion, up 12 percent from last year, and profit rose 10 percent to $24.1 billion.

The company’s investment in artificial intelligence and cloud computing services led to $22.6 billion in capital expenses in the last quarter, nearly doubling from the previous year. Microsoft plans to spend around $80 billion on data centers this fiscal year to meet customer demand for A.I. services.

While growth in sales of Microsoft’s Azure cloud platform slightly missed expectations, over a third of that growth came from artificial intelligence. Microsoft has been expanding its A.I. offerings, including partnerships with OpenAI and DeepSeek, raising questions about the impact of DeepSeek’s advanced A.I. technology on Microsoft’s investments.

Despite the uncertainty caused by DeepSeek’s advancements, Microsoft remains focused on providing customers with innovative A.I. systems. The company plans to increase capital expenditures in the next fiscal year, albeit at a slower pace. Investors are hopeful that Microsoft’s investments in artificial intelligence will pay off in the long run, as demand for A.I.-powered services continues to grow.

Note: The image is for illustrative purposes only and is not the original image of the presented article.

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