Microsoft cloud posts strong March quarter revenue amid AI spending
Microsoft's cloud just posted a big revenue boost for the March 2026 quarter, even as the company spends heavily on AI and faces tough competition.
Capital spending hit $31.9 billion, less than last quarter but still below what Wall Street expected, showing Microsoft is doubling down on tech growth despite some investor worries.
Microsoft accelerates AI partnerships and deployments
Microsoft is leaning hard into AI, putting money into projects like Copilot 365 and deepening its partnership with OpenAI (now with a fresh deal giving it a slice of OpenAI's revenue until 2030).
The company is also teaming up with Anthropic to power new cloud features, while expanding Copilot to thousands more users at Accenture.
Meanwhile, rivals like Amazon are stepping up their own AI game, keeping the pressure (and innovation) high.