Microsoft’s Supreme Finance Officer, Amy Hood, sent a message to Microsoft employees in recent AI news. Bow your head and concentrate.
Hood sends emails every quarter when Microsoft reports revenue, and most re -revenge public financial reports.
Before this quarterly e -mail, the development of a Chinese AI startup DEEPSEEK, the White House AI policy, which raised questions about infrastructure expenditures, Openai, Oracle, and SoftBank spent $ 50 billion on AI infrastructure. AI news, including a joint venture called Stargate, was ahead. Announced by President Donald Trump.
“There were many news related to AI this week, but our focus is clear. While providing AI solutions in the real world, we scaled the cloud and AI infrastructure globally, and adopted partners and customers. , Support for construction and growth, said Hood, “We need to provide the promise of the product. It remains immovable in priority -security, quality, AI innovation.
China’s AI Startup DeepSeek has recently launched a model that competes with Openai at some costs. With this release, many of the technology industries are questioning the $ trillions of AI infrastructure.
Microsoft is familiar with the great expenditure of the industry for AI infrastructure and whether it will lead to actual returns. The company recently stated that it would invest about $ 80 billion to build AI -compatible data centers alone in FY2025.
The debate on DeepSeek was set on Wednesday for the second quarter of Microsoft’s revenue. The company’s shares have decreased after reporting that AI and cloud computing services have decreased than expected.
Please read Amy Hood’s complete memo for Microsoft employees:
“Team, this afternoon, we announced the second quarter of financial results. Increased revenue by 12 % to $ 69.6 billion, operating income increased by 17 % to $ 31.7 billion, 10 % per share. It was $ 3.23, and our Microsoft Cloud Revenue increased by 17 % from the year -on -year, increased by 175 %, an annual income of 13 billion dollars. Out -performance is also promoted mainly by a strong execution of Azure from partners.
Azure and other cloud services have increased 31 % and landed at the lower end of expectations. This included 13 points of growth from AI services, exceeding expectations. The growth of non -AAI services was slightly lower than our expectations and was influenced by some short -term execution issues. Microsoft365 Commercial cloud revenue has slightly exceeded the expectations promoted by the E5 Suite and M365 Copilot, an increase of 16 %. The M365 co -pilot is growing adoption, expansion, and use.
Dynamics 365’s revenue increased 19 % by all workloads. We have invested $ 22.6 billion to invest in both short and long -term demand signals of Microsoft cloud, including AI workloads. Consumer business, revenue increased 2 %, better than expected. When we are working to accelerate the growth of consumer business, we continue to focus on providing the user’s loyalty and providing the experience of consumers. The following is an important point in consumer business. Search and news advertisement EX TAC profits exceeded expectations, exceeding their expectations due to the growth of rates and continuous growth from Edge and Bing. Before Windows 10 EOS, commercial PC inventory builds, and there is also uncertainty about tariffs.
Game revenue has been reduced by 7 %, mainly driven by hardware. Xbox content and service revenue increased by 2 % prior to the performance of Blizzard and Activision content. CalloftDuty.linkedin Revenue has increased 9 % and reflects the growth of all lines in the business. However, the continuous weakness of the employment market in major industries has adversely affected the growth of Talent Solutions Business. As a reminder, our shares trading not only the results but also the next quarter and subsequent prospects. Investors listen to our revenue to gain deeper insight into these indicators. I recommend you to listen as we provide useful contexts that help our priority and commitment efforts. You can participate in the Pacific time today at 2:30 pm, listen to on -demands, and read the transcript on an investor -related website. There are many AI -related news this week, but our focus is clear: Real distribution -globally scaling the World AI Solution Cloud and AI infrastructure, supporting, built, and growth by partners and customers. I will do it. As a company, we continue to innovate the priority, security, quality, and AI necessary to realize the promise of the product. Thank you for your focus because we work together for the customers who rely on us. Thanks and gratitude, Amy “
Are you an employee of Microsoft or an insight to share? Contact the reporter Ashley Stewart via the encrypted messaging app signal (+1-425-344-8242) or e-mail (astewart@bussinsider.com). Use non -processed devices.
