The clearest signal of Microsoft’s AI strategy appeared in its Intelligent Cloud segment. The result is a flywheel: AI demand drives Azure usage, which in turn justifies further infrastructure investment, reinforcing Microsoft’s scale advantage. Microsoft’s capital expenditures including assets acquired under finance leases were $37.5 billion for the most recent quarter. See also: Enterprise AI Gets Real as Davos 2026 Focuses on AgentsProductivity ReimaginedOne often overlooked aspect of Microsoft’s AI strategy is governance. Microsoft 365 Commercial cloud revenue increased 17%, while consumer cloud revenue jumped 29%.