"Hood sends out these emails every quarter when Microsoft discloses its financials. The memos mostly rehash what the company reports publicly, such as how revenue and profit are growing, but often they show what developments the executive deems most important. In this quarter's memo, Hood called out the company's record $34.9 billion in spending on computing resources like GPUs, CPUs, and datacenter infrastructure to "expand capacity and support strong demand signals we see." Microsoft forecasted that it would spend $30 billion in capex in the first quarter."
"Microsoft reported revenue of $77.7 billion for the first quarter of its fiscal year ending in September, exceeding Wall Street expectations. Microsoft's stock fell more than 3% in after-hours trading, amid signs that demand for AI and cloud computing resources is exceeding the company's supply. An Azure outage preceded the earnings release. Investors are also broadly worried about whether Big Tech's massive spending on AI infrastructure will pay off. The earnings release followed an Azure outage and a new deal with OpenAI."
Microsoft reported $77.7 billion revenue for the first fiscal quarter ending in September, beating Wall Street expectations. Shares fell over 3% in after-hours trading amid indications that demand for AI and cloud computing resources is outpacing available supply. An Azure outage occurred prior to the earnings release. CFO Amy Hood highlighted a record $34.9 billion in spending on GPUs, CPUs, and datacenter infrastructure to expand capacity and support accelerating demand. Microsoft had forecasted $30 billion in capex for the quarter. The company signed a new deal giving Microsoft a 27% stake in OpenAI's for-profit business, valued at about $135 billion.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]