1350 ET - Microsoft developing its own frontier artificial-intelligence model, targeted for 2027, will require a substantial amount of computing capacity, likely limiting growth prospects for the company's Azure business, TD Cowen analysts write in a note. Microsoft's CFO had already signaled that computing resources would be prioritized for internal research & development, they note, and the shift is likely reflected in Microsoft's guidance for the current quarter. "We do think this will limit upside levers and ability to re-accelerate Azure growth," the analysts write, projecting that capacity gets allocated back toward Azure once computing needs for training the new model begin to let up, likely in mid-2027. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
April 03, 2026 13:50 ET (17:50 GMT)
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