AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.

"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online

The tech giants vow to barrel ahead despite the jolt from China’s DeepSeek.

Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its artificial intelligence technology.

Microsoft Corp. investors focused on the company’s disappointing revenue of its Azure cloud business on Wednesday, but they should also be looking at another number indicative of future growth: bookings.

Microsoft reported lower-than-expected revenue growth for its AI and cloud divisions as scrutiny grows over tech's AI investments.

Microsoft has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.

Microsoft confirmed it will bring the DeepSeek R1 model to Azure cloud and GitHub in a move that it hopes will lessen its reliance on OpenAI's models. The Latest Tech News, Delivered to Your Inbox