Cloud
Microsoft Is More Dependent On OpenAI Than The Converse
Everyone is jumpy about how much capital expenses Microsoft has on the books in 2025 and what it expects to spend on datacenters and their hardware in 2026. …
Azure
AI
Microsoft: Getting Margins From AI Means Sometimes Saying No
Hot on the heels of an updated contract with OpenAI that will see the AI model builder commit to spending an incremental $250 billion for Azure infrastructure, Microsoft has reported that it has a revenue backlog dominated by its Azure cloud that stood at $392 billion as the first quarter of its fiscal 2026 year ended in September. …
Cloud
It Is Very Hard To Catch AWS On The Clouds
Years before Amazon Web Services launched in March 2006, there were a slew of grid computing startups and incumbent system makers – and a few of them with deep supercomputing experience – that were hawking remotely accessible, utility-style computing on demand. …
AI
AI Steady, Cloud Accelerating Gives Microsoft A Big Datacenter Boost
Wall Street has been looking for some good news, and Microsoft came through with its financial results for the third quarter of its fiscal 2025 as its cloud business – and to be specific, its non-AI cloud business – grew much more strongly than expected. …
AI
Azure Can’t Make Up For On Premises Profit Decline At Microsoft
If you think it might be difficult to sell companies general purpose servers when they are frenzied about GenAI and trying to figure out how to get GPU-accelerated systems, you ought to try to convince the same companies to upgrade to Windows Server 2025, which launched last November. …
AI
OpenAI Declares Its Hardware Independence (Sort Of) With Stargate Project
The dependency dance between AI pioneer OpenAI and the Microsoft Azure cloud and the application software divisions of its parent company are fascinating to watch. …
AI
You Are Paying The Clouds To Build Better AI Than They Will Rent You
Think of it as the ultimate offload model.
One of the geniuses of the cloud – perhaps the central genius – is that a big company that would have a large IT budget, perhaps on the order of hundreds of millions of dollars per year, and that has a certain amount of expertise creates a much, much larger IT organization with billions of dollars – and with AI now tens of billions of dollars – in investments and rents out the vast majority of that capacity to third parties, who essentially allow that original cloud builder to get their own IT operations for close to free. …
Cloud
Oracle Runs OCI Clones At Rival AWS, Google, And Azure Clouds
It’s a multi-cloud world and one with a cloud infrastructure services market that is dominated by three large players. …
Cloud
The Sugar Daddy Boomerang Effect: How AI Investments Puff Up The Clouds
Here’s a question for you: How much of the growth in cloud spending at Microsoft Azure, Amazon Web Services, and Google Cloud in the second quarter came from OpenAI and Anthropic spending money they got as investments out of the treasure chests of Microsoft, Amazon, and Google? …
Cloud
AI Accelerates Cloud Revenues As Well As Cloud Investments
Three years ago, thanks in part to competitive pressures as Microsoft Azure, Google Cloud, and others started giving Amazon Web Services a run for the cloud money, the growth rate in quarterly spending on cloud services was slowing. …