Microsoft Reports Azure Cloud Sales Amid AI Data Center Boom

Microsoft has started reporting Azure cloud sales on a quarterly basis for the first time. This move provides a direct comparison to its top rivals, Amazon.com and Alphabet's Google, as they compete in the computing market during an AI data center boom.

Azure had $29.4 billion in sales in its most recently ended quarter and $101.9 billion in sales in its most recent fiscal year ended June 30. This places Microsoft behind Amazon, whose cloud sales were $42.2 billion in its most recent quarter, but ahead of Google, which reported $24.8 billion in cloud sales in its most recent quarter.

Microsoft has also updated the quarterly forecast it gave investors last month, slightly lowering its Azure revenue forecast. This change reflects the move of some sales from GitHub to grouping those with M365 Cloud software businesses, which includes most of its advanced AI offerings. Microsoft's overall current quarter outlook remains unchanged.