Microsoft reported that annual revenue for its Azure cloud platform exceeded $75 billion, up 34% from the previous year. The company’s quarterly profit also rose by 24%, beating Wall Street expectations. CEO Satya Nadella stated they have over 400 data centers worldwide, emphasizing their rapid growth.

Azure has become crucial for Microsoft’s AI focus, offering tools to big businesses. Despite impressive growth, it still trails behind Amazon Web Services, which reported $107.6 billion in revenue. Microsoft announced layoffs of 15,000 workers this year, aiming to cut costs amid expensive infrastructure investments for cloud and AI technology.

CEO Nadella acknowledged the weight of the layoffs but framed them as an opportunity to redefine the company’s mission for the AI era. Despite the layoffs, Microsoft’s overall workforce remains stable at 228,000 employees, with a shift towards more U.S.-based roles. Wall Street has praised Microsoft’s leaner approach amidst significant capital spending in AI technology.

Google recently announced an additional $10 billion in capital expenditures, while Microsoft’s CFO expects $30 billion in spending for the next quarter. These moves reflect the massive investments required for cloud and AI technology, as tech giants strive to stay competitive in the rapidly evolving industry.

Read more at Yahoo Finance: Microsoft’s annual cloud revenue hits $75B, profit beats expectations