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

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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Amazon rallies on cloud recovery as it chases Microsoft for AI businessAmazon rallies on cloud recovery as it chases Microsoft for AI business
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Amazon rallies on cloud recovery as it chases Microsoft for AI businessAmazon.com rallied 5% on Friday on strong growth at its most profitable cloud business as it aims for a larger share of the booming artificial intelligence market in a race with Microsoft.
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