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Microsoft beats quarterly estimates as AI boosts cloud business and spending

Microsoft beats quarterly estimates as AI boosts cloud business and spending
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Microsoft beats quarterly estimates as AI boosts cloud business

(Reuters) -Microsoft on Tuesday laid out an aggressive spending plan to meet demand for its new artificial intelligence services after surpassing Wall Street estimates for fiscal fourth-quarter revenue and profit. Costs rose sharply as Microsoft built new data centers to support AI, and Chief Financial Officer Amy Hood said on a conference call with analysts the company's capital expenditures would continue rising each quarter throughout fiscal 2024. Wall Street is looking at how generative AI services may benefit Microsoft, which secured an early lead with investments in OpenAI, owner of the popular ChatGPT service.

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