Microsoft breaks out Azure revenue

Microsoft is finally letting the world see how much money Azure actually brings in, breaking out its cloud business into clearer segments and putting a real dollar figure on quarterly revenue—$29.42 billion last quarter, or about a third of the company’s total. That means investors and customers can now compare Azure directly against Amazon and Google Cloud, making contract negotiations and benchmarking a lot more concrete. But there’s a catch: Microsoft has stopped disclosing costs and margins for its old business lines, so while revenue is more transparent, profitability is now harder to track.

The story deepens with Microsoft’s aggressive push into AI and data center efficiency. Copilot workload throughput is up 4x since January, new GPUs are coming online twice as fast, and Microsoft’s in-house Maia 200 AI chip is slashing model power costs by up to 89% in some use cases. Those savings help Microsoft itself, but it’s still not clear how much they’re flowing through to customers—or if surging Azure growth is too dependent on OpenAI. Meanwhile, a massive new energy deal with Chevron secures 2.67 gigawatts of natural gas power for Texas data centers, raising fresh questions about regulatory risk and the environmental impact of an “AI runs on gas” future.

Based on reporting and analysis from Trefis, Stifel, Engadget, and Bank of America.

Powered by Apisod.com