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Microsoft's AI boost helped cloud business outpace rivals Amazon and Google in latest quarter

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Large cloud vendors are still helping clients work through necessary cost cuts, but Microsoft Azure has gotten a boost from artificial intelligence

Microsoft pointed to a surge in demand for artificial intelligence tools, even as some clients continue to focus on cost-saving projects.

Bernstein Research analysts led by Mark Moerdler said on Wednesday in a note to clients they viewed Microsoft's results as a sign that the software maker"has taken the AI mantel from Google, and that Azure could become a bigger and more important hyperscale provider than AWS." They noted the significance of Microsoft's capital expenditures rising to $11.2 billion from $10.7 billion in the prior quarter.

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