Microsoft Cloud Business Growth Exceeds Expectations as AI Spending Hits Record High

According to a report by Jinse Finance, Microsoft (MSFT.O) announced in its fourth-quarter financial report that its cloud business grew faster than expected and that spending on artificial intelligence infrastructure reached a record high. In its earnings release on Wednesday, Microsoft stated that its closely watched Azure cloud computing division saw sales increase by 39% in the fourth quarter. The company also revealed that, for the year ending June 30, sales in its cloud computing division grew by 34% to over $75 billion, marking the first time Microsoft has disclosed Azure’s revenue figures. Following the release of the financial report, Microsoft’s shares surged by about 7% in after-hours U.S. trading. In recent years, Microsoft has integrated AI tools into its products—including those powered by ChatGPT creator OpenAI—betting that conversational chatbots and more advanced automation technologies will drive growth in its productivity software and cloud services. For the fourth quarter of fiscal year 2025, Microsoft (MSFT.O) reported revenue of $76.44 billion, compared to $64.7 billion in the same period last year, with market expectations at $73.807 billion.