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IT
Customers encouraged to take a multi-model approach to AI as Microsoft's infrastructure CapEx soars 70%
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diginomica
Satya NadellaA strong end to its current fiscal year kept Wall Street happy with Microsoft, despite a 70% year-on-year increase in CapEx to fund AI infrastructure expansion.
Total Q4 revenue of $89.5 billion dollars was up 17% year-on-year, while net income rose 24% at $27.2 billion.
Revenue from Microsoft Cloud grew 27% to $56.5 billion dollars, within which Azure revenue was up 39%.
CapEx spendIn terms of the CapEx to fund AI infrastructure growth, spend for the quarter hit $41 billion, roughly two-thirds of which went on ‘short-lived assets’, primarily CPUs and GPUs.
Since the start of the year, we have seen 5x increase in the number of customers building with models from multiple providers.