Microsoft's Copilot, Frontier AI Work Pressures Azure Revenues -- Market Talk

Dow Jones03-24 03:49

1549 ET - Microsoft's cloud revenue from Azure is likely to post a much smaller beat, if any, than Amazon Web Services and Google Cloud, as the company's efforts to improve its Copilot product pressure its cloud capacity, Melius analysts write in a note. "Fixing Copilot is key to survival," the analysts write. "However, in order to fix it, Microsoft needs to use more of its own Azure capacity to train its own models now and later it will need to allocate more capacity for inference if customers actually use it." The company's drive to develop superintelligence through its own frontier models will also demand billions in computing capacity, the analysts write - all of which will be unavailable to Azure customers. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

March 23, 2026 15:49 ET (19:49 GMT)

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