- Microsoft says Capex could climb 24% to $ 30 billion
- Almost half is intended for processor and GPU expenses
- Azure Cloud Business continues to operate strongly thanks to efficiency gains
Microsoft has confirmed its intention to invest more than $ 30 billion in capital expenses in the next quarter, making it the most expensive quarter for the company to date.
If Microsoft follows, it would mark a 24% increase compared to its last financial quarter, during which the company allocated 24.2 billion dollars to capital expenditure.
Although more than half has gone to long -term assets with more than 15 years of monetization potential, most of the others have been spent only to CPU and GPU for the growth of IA workloads, highlighting not only the extent of the potential, but also the interest that Microsoft has, when it has the budget to allocate billions of AI.
Microsoft spending big
Microsoft’s expenses are part of a race to extend the capacity of AI and Cloud while it continues to compete with Amazon (currently the most popular cloud supplier in the world) and Google Cloud.
In terms of budgetary performance, the fourth quarter of the company’s exercise experienced an increase of 18% on the other of quarterly income, to $ 76.4 billion.
Unsurprisingly, there were the most lucrative products, there were products related to the cloud. Microsoft 365 income from commercial and consumption cloud increased by 18% and 20% each, with intelligent cloud revenues up 26% to 29.9 billion dollars and income for Azure and other Cloud services up 39%.
Even if companies around the world want to stay above the AI curve, Microsoft could not impress as much by PC expeditions. OEM revenues and Windows devices only experienced a 3%increase.
“Cloud and AI are the engine of business transformation through each industry and sector,” said CEO Satya Nadella.
Financial director Amy Hood explained that, even if Microsoft Cloud’s gross margin had dropped by two percentage points at 68%, performance was better than expected thanks to “continuous efficiency gains”.
