Microsoft’s Azure just crossed $100bn a year, and the AI bet mostly paid off

Microsoft's Azure cloud service surpassed $100 billion in annual revenue, growing 43% year-over-year despite chip shortages. The company's cloud segment revenue rose 27% to $59.3 billion in Q2 2024, with a commercial backlog increasing 84%, indicating broad demand beyond AI labs. Capital expenditures doubled year-over-year to $35.8 billion in the quarter, reflecting heavy investment in infrastructure.