Microsoft's AI infrastructure spending to meet growing cloud services demand is outpacing Wall Street expectations, deepening investor fears about the costs of sustaining the boom.

The company is seeing more demand for its cloud computing and AI services than it can keep up with, a challenge that is supercharging profits.

Microsoft has pulled this off while relaxing its grip on Open AI by, for instance, letting it use alternative sources of computing power so long as it asks first. On October 28th Microsoft loosened the setup once again,

Microsoft CEO Satya Nadella says AI is reshaping tech, business models, and organizations, and leaders must adapt quickly.

Microsoft’s stock has been one of the most reliable in tech. Investors have stayed happy with the company’s margins and its reinvestment levels back into its cloud business, closely watching Azure’s performance as a key indicator of growth and sustained strength.

The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Microsoft's Azure cloud service providers suffered a major outage on Wednesday that left users unable to access Office 365, Minecraft, and other services. The tech company wrote on its Azure status page that a configuration change to its Azure ...