Microsoft AI compute allocation

Microsoft executives are asking why CEO is feeding rivals' products before his own

Microsoft's $190 billion AI capex year isn't buying enough compute, and executives are asking why CEO Satya Nadella's allocation puts Azure tenants like Adobe ahead of M365 Copilot. CFO Amy Hood told investors first-party apps get GPUs first and Azure customers get the remainder. Business Insider reports Microsoft is now shopping Amazon and Google for capacity after GitHub outages, with the stock down 24% before Q4 earnings.

Why Microsoft is asking Google and Amazon for 'help' despite spending $190 billion on AI

Microsoft is spending a record $190 billion on AI infrastructure this year, yet it is still short on computing capacity. A Business Insider report says the company is now evaluating Amazon and Google for extra cloud capacity, after Amazon helped during GitHub outages. Inside Microsoft, CFO Amy Hood's compute pecking order puts Copilot first and Azure customers last, and executives say that message is hard to sell.

Microsoft's Azure Cloud Business Crosses $100 Billion In Annual Revenue, Up 41% As AI Demand Accelerates

Microsoft CFO's email to staff has a message on the company's biggest AI bets

Microsoft's chief financial officer reported strong AI investment returns. Azure and Copilot businesses showed significant progress and momentum. Cloud revenue reached over fifty-nine billion dollars in the fourth quarter. Microsoft invested heavily in infrastructure to meet growing demand. The company exceeded financial expectations and looks forward to future opportunities.