Microsoft's costs in focus as fears rise over slow payoff from AI

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Microsoft's costs in focus as fears rise over slow payoff from AI - Channel News Asia

Quick Summary:

Microsoft investors will have one big question when the tech giant reports earnings on Tuesday: has growth in its Azure cloud-computing business picked up enough to justify the billions of dollars being spent on artificial intelligence infrastructure?

The Redmond, Washington-based tech giant is, however, yet to disclose the revenue contribution from the service, and analysts believe Copilot's impact will be more apparent in the back half of calendar year 2024.

The company is expected to post a 14.6 per cent increase in overall revenue for the April-June period, compared with 17 per cent growth in the previous quarter.