"Chief financial officer Amy Hood said: "This quarter, roughly half of our spend was on short-lived assets, primarily GPUs [graphics processor units] and CPUs [central processor units], to support increasing Azure platform demand, growing first-party apps and AI solutions, accelerating R&D by our product teams, as well as continued replacement for end-of-life server and networking equipment." There is also longer term expenditure, which includes $11bn of finance leases that are primarily for large datacentre sites."
"Speaking about the company's need to buy more CPUs and GPUs, Hood admitted Azure would be "capacity constrained", adding: "We will continue to balance Azure revenue growth with the growing needs across our first-party apps and AI solutions, our own R&D efforts and the end of life server replacements. Therefore, we now expect to be capacity constrained through at least the end of our fiscal year.""
Azure cloud experienced more than eight hours of downtime on the same day Microsoft promoted a planet-scale cloud and AI factory. Microsoft cloud revenue reached $49bn, a 26% year-on-year increase, and total revenue rose to $78bn, up 18%. AI feature monthly active users reached 900 million. Capital expenditures increased to $35bn, driven by cloud and AI demand. Roughly half of spending targeted short-lived assets, primarily GPUs and CPUs, to support Azure demand, first-party apps, AI solutions, R&D, and server replacements. Longer-term spending includes $11bn of finance leases for large datacentre sites. Capacity constraints are expected through the fiscal year as workloads pivot to GPUs and shortages persist.
Read at ComputerWeekly.com
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