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(Bloomberg) -Microsoft Corp. said that his cloud computer activities will continue to grow slowly in the current quarter, because the company has difficulty building enough data centers to treat the demand for its artificial intelligence products.
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Turnover at the Azure Cloud Division will rise as much 32% in its tax third quarter, not much faster than in the last three months of 2024. The shares fell on Thursday by 6% to $ 415.79 at 9:33 am in New York .
The software maker established in Washington, based in Washington, is considered a leader in commercializing artificial intelligence products, thanks to his close collaboration with Chatgpt Maker OpenAi. In the past year, Microsoft has unleashed a snowstorm from AI assistants from the Copilot brand, but the efforts to earn income with those products take longer than some investors would prefer.
Microsoft said Azure AI services grew by 157%. But the general sale in the most important cloud unit is hurt by the fact that the company still does not have enough data center capacity to meet the needs of the customer, said financial director Amy Hood in an interview. Later she said investors that the capacity restrictions should rise towards the end of the tax year.
The company has almost $ 300 billion in commercial service contracts that Microsoft has to offer in the future and has not yet recognized income, she said.
The question remains strong, with commercial bookings – a benchmark for future income – 67%rises, “far ahead” on what Microsoft expected, she said. Hood attributed this partly to Azure obligations from OpenAi.
Together with Cloud-Rivals Google and Amazon.com Inc., Microsoft publishes more than ever in its history, publishing that usually go to the chips and data centers needed to feed powerful AI services. The company has said it expects to spend $ 80 billion on AI Data Centers this financial year. Wall Street started questioning the enormous expenditure, especially after the Chinese Upstart Deepseek has released a new open-source AI model that claims the skills of American technology against a fraction of the costs.
The capital spending in the quarter were $ 22.6 billion, the company said, which exceeded the analyst expectations of around $ 21 billion. The infrastructure building resulted in narrower margins in the cloud industry.
