AI Is Fueling Microsoft’s Growth. Can It Sustain the Costs?

Microsoft is betting on a platform-driven AI strategy, where value comes from integrated ecosystems (cloud + AI + productivity tools) rather than standalone products. The company posted strong growth driven by AI and cloud demand, including a $37B AI revenue run rate (+123% YoY) and major Azure/cloud expansion, signaling enterprises are deeply committing to Microsoft’s AI stack.

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