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The New York Times
Microsoft Increases Spending on A.I. as Profit Jumps 31.6%
Microsoft announced a dramatic increase in its artificial intelligence investments, up 69.4% year-over-year, bringing its quarterly capital expenditures to $41 billion. This move aligns with a robust profit of $35.8 billion for the quarter, representing a 31.6% year-on-year growth. The company’s cloud computing segment, particularly Azure, played a crucial role in driving this growth, with a 43% increase in revenue, surpassing analysts' expectations and emphasizing the significance of AI in Microsoft's business strategy.
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Published 29 Jul 2026, 22:20 UTC1 min read
Visit original article ↗Lead image — The New York Times
Summary
TL;DR
- Microsoft's AI spending reached $41 billion in Q2 2026.
- Total capital expenditures increased by 69.4% from last year.
- Quarterly profit surged to $35.8 billion, up 31.6%.
- Overall revenue rose to $90 billion, marking a 17.8% year-on-year increase.
- Azure revenue drove growth with a 43% increase, outperforming expectations.
Interesting facts
- Microsoft's total AI-related expenditures for fiscal 2026 were $145.3 billion.
- The company's growth in Azure is seen as a key indicator of successful AI investment.