Microsoft shares jump after strengthening the strong demand of artificial intelligence

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Microsoft has published better than the expected quarterly profits on Wednesday, as its cloud section mentioned a strong growth in sales on the strong demand for services related to artificial intelligence.

Revenue increased by 13 percent in the quarter to the end of March of the same period in the previous year to $ 70.1 billion. Net income increased by 18 percent to $ 25.8 billion. Either the numbers exceed the average estimate in the S&P visible alpha survey.

Microsoft The shares jumped 6 percent in trading after working hours in New York, adding about $ 176 billion in the market value.

The group’s cloud department, known as Azure, recorded a 20 percent increase in revenue from a year to 42.4 billion dollars, in line with expectations on a large scale. The main unit has missed expectations in the previous quarter, causing the shares to sell.

Microsoft’s capital expenses – spending on other major equipment and investments – $ 21.4 billion per quarter, increased from $ 14 billion in the same period in the previous year. The company said in January that it will spend nearly $ 80 billion in the fiscal year ending June 30 to build a new infrastructure for the data center.

In an interview with Financial Times this week, President Microsoft Brad Smith pledge To spend “tens of billions of dollars” annually on European data centers to protect customers access to their data and computing power. This step aims to reassure the region that President Donald Trump will not be able to cut access to critical technology amid a global trade war.

However, the relationship of developed software with Openai Start-UP, which supported it with $ 13 billion in investment, raised doubts about whether to set the pace of development.

Microsoft said in January it will change the structure of a deal with Openai to enable the company led by SAM Altman to use cloud computing services from Rivals. It maintains the right of the first rejection.

This step coincided with the start of the operation with the Oracle and Softbank cloud provider in Japan that it will build at least $ 100 billion of Amnesty International Infrastructure in a project called Stargit.

In recent weeks, Microsoft has been forced to back down from allegations that she was suffering from slowdown in artificial intelligence after reports that canceled lease contracts and moved away from negotiations with multiple data service providers.

“We are slowing or temporarily stopping from some projects in the early stage,” said Noel Walsh, head of the cloud operations at Microsoft, in a statement earlier this month. “Any new endeavor of this size and size requires light movement and improvements, and we learn and grow with our customers.”