Microsoft Azure demand continues to outstrip capacity, with nearly 90% of its cloud business revenue generated from clients other than frontier model companies such as OpenAI.
59 minutes ago
Microsoft stated during its earnings call that demand for Azure continues to outstrip its current capacity supply; newly deployed AI infrastructure can quickly generate economic returns in the same quarter it is launched, and the company expects free cash flow to return to positive growth in fiscal 2027 as capital expenditure growth slows. Additionally, Microsoft CFO Amy Hood revealed that the company’s fiscal 2026 cloud business revenue hit $214.4 billion, with Azure’s annual revenue crossing the $100 billion threshold for the first time. Notably, nearly 90% of this cloud revenue came from customers outside leading large language model (LLM) firms like OpenAI and Anthropic, signaling that enterprise AI demand has expanded broadly to a wider range of industry clients, rather than relying primarily on top AI model developers. As of press time, Microsoft’s U.S. stock gained 8.83% in after-hours trading.
U.S. military strikes Iran's Abadan; explosions reported in Bandar Abbas.
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SK Hynix's decline widened to 7.57%, while Samsung Electronics fell 2.64%.
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The three major U.S. stock index futures rose broadly, with Nasdaq futures surging more than 1%.
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Reuters: Millennium Management plans to raise a record $20 billion, betting the AI rally will continue.
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