Microsoft reports big profits amid massive AI investments
Xbox hardware sales dropped 29 percent, but that barely made a dent.
Microsoft reported quarterly earnings that impressed investors and showed how resilient the company is even as it spends heavily on AI.
Some investors have been uneasy about the company’s aggressive spending on AI, while others have demanded it. During this quarter, Microsoft reported that it spent $20 billion on capital expenditures, nearly double what it had spent during the same quarter last year.
However, the company satisfied both groups of investors, as it revealed it has still been doing well in the short term amid those long-term investments. The fiscal quarter, which covered July through September, saw overall sales rise 16 percent year over year to $65.6 billion. Despite all that AI spending, profits were up 11 percent, too.