The company claims that thanks to software optimisation and hardware asset management, it can make datacentre kit last six years, and has already contracted GPUs for most of their useful life to customers
The company claims that thanks to software optimisation and hardware asset management, it can make datacentre kit last six years, and has already contracted GPUs for most of their useful life to customers
Among the insights revealed during the latest quarterly earnings call from Microsoft is that it is de-risking its artificial intelligence (AI) acceleration expansion, with customers already contracted to buy graphics processor unit (GPU) capacity.
The company reported that Microsoft Cloud revenue surpassed $50bn for the first time, growing 26% year over year (YoY). Overall, it reported revenue of $81.3bn, up 17% YoY.
Microsoft said that it has expanded global datacentre capacity, adding nearly one gigawatt of total capacity this quarter and stating there has been a10x increase in growth of Microsoft 365 Copilot daily users. The company said it is making continued investment in AI infrastructure to meet the growing demand for Azure, M365 Copilot, and GitHub Copilot.
When asked about hardware capital expenditure, chief financial officer Amy Hood said: “The majority of the capital that we’re spending today, and a lot of the GPUs that we’re buying, are already contracted for most of their useful life.
