Microsoft says cloud AI demand is exceeding supply even after 79% surge in capital spending

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Microsoft says cloud AI demand is exceeding supply even after 79% surge in capital spending
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Microsoft has more demand than supply for running artificial intelligence models in the cloud.

Microsoft's demand for consumption-based artificial intelligence services in the cloud is outstripping supply, CFO Amy Hood said on the company's earnings call.Microsofton Thursday, Microsoft said capital expenditures jumped 79% from a year earlier to $14 billion. The company is spending much faster than it's increasing revenue — sales climbed 17% in the period.

"We do have demand that exceeds our supply by a bit," Microsoft CFO Amy Hood told analysts on the company's earnings call.

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