- Microsoft says CAPEX could climb 24% to $ 30 billion next quarter
- Almost half of this is destined for CPU and GPU consumption
- Azure Cloud Business still works strong thanks to efficiency gains
Microsoft has confirmed plans to invest over $ 30 billion in capital costs next quarter alone, making it the most expensive quarter of the company to date.
If Microsoft is following, it would mark an increase of 24% compared to the latest financial quarter, with the company awarded $ 24.2 billion for capital costs.
Although more than half went to long-term assets with more than 15 years of revenue potential, most of the rest of the rest were exclusively dedicated to CPUs and GPUs for growing AI working load, which emphasized not only the extent of the potential, but how much interest Microsoft has when it has budgeted to award billions to AI.
Microsoft spends big
Microsoft’s expenditure spree forms part of a race to expand AI and Sky Capacity as it continues to fight it with Amazon (currently the world’s most popular cloud provider) and Google Cloud.
With regard to fiscal results, the company’s FY25 Q4 saw an increase of 18% over the year in quarterly turnover of $ 76.4 billion.
Among the most lucrative companies were surprisingly cloud-related products. Microsoft 365 Commercial and Consumer Cloud revenue increased 18% and 20% each with intelligent sky revenue increased by 26% to $ 29.9 billion and revenue for Azure and other cloud services with a staggering 39%.
Although companies everywhere want to be at the top of the AI curve, Microsoft was not able to impress so much with PC shipments. Windows OEM and units of revenue experienced only a 3% increase.
“Cloud and AI are the driving force of business transformation across any industry and sector,” explained CEO Satya Nadella.
CFO Amy Hood explained that although Microsoft Cloud -Brutomarginal had dropped two percentage points to 68%, the benefit was better than expected thanks to “continued efficiency gains.”
