The growing need for artificial intelligence (AI) has given Microsoft a surprisingly strong quarter of the quarter. “Cloud and AI are essential for every company to increase production, reduce costs and to accelerate growth,” says Satya Nadella, the head of the software group.
According to the information, sales rose by 13 percent in the past quarter by $ 70.1 billion (61.64 billion euros) and the purely profit – -winning currency -adjusted to 25.8 billion. The income of the Cloud Division Azure, of which the servers include, have even grown AI programs with a third party. The shares of the group rose by six percent in Wall Street after the Wall Street company.
“The development of Microsoft Cloud shows that the company can convert the AI infrastructure into margin-resistant growth,” praised Jeremy Goldman of the Emarketer Market Research Institute. Rival Google had also announced strong cloud growth last week, but did not miss the expectations of the analysts.
Fear of poor investments and overcapacity
In recent months, doubts have always arisen whether the billions of investments in new data centers will bear fruit. This speculation was fed by, among other things, statements by the analysts of the asset manager Cowen, who, according to Microsoft, said goodbye to new server farms due to overcapacity.
A high-ranking Microsoft manager wrote on the IinDER Online platform that holds its company to his expansion plans. In some cases, however, the schedule is stretched or the project is temporarily on hold. The competitor Amazon described similar reports about his AI plans as usual capacity management. Amazon Web Services (AWS) is the world’s largest cloud provider.
Microsoft and Google want to place $ 155 billion in new data centers in the current year. This is almost half of the sum that the large technology groups want to pump the expansion of the AI infrastructure in 2025. Amazon -Baas Andy Jassy emphasized that a rapid expansion was needed to stay competitive. AI costs have become an important factor for the world’s largest economy. According to the Bank JPMorgan calculations, they can speed up the growth in this and next year to 0.2 percentage points.
The customs war, which was established by US President Donald Trump, could thwart these plans. “A large part of the electrical infrastructure and the equipment for data centers are produced outside the US,” says Pat Lynch, director of the Division Division of the Commercial Property Manager CBRE. “In many cases, the supply is scarce and demand is high worldwide.” Chinese suppliers in particular can divert their exports to other countries.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
