Artificial intelligence helped boost Microsoft’s cloud sales past analysts’ forecasts, as demand for the high-profile technology challenges the company’s capacity to keep up with its rivals.
The Seattle-based group, which has become a bellwether for the rapidly developing generative AI industry, on Thursday reported revenue and earnings ahead of analyst estimates for the three months to March 31. It said it would increase capital spending in support of the technology behind chatbots and smart assistants.
“Near-term AI demand is a bit higher than our available capacity,” said chief financial officer Amy Hood, affecting the computing power available to customers looking to deploy generative AI systems.
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