# Microsoft Sees Big Profits Despite Huge AI Spending! 💰

**URL:** <https://onehack.st/t/microsoft-sees-big-profits-despite-huge-ai-spending/294870>\
**Category:** News & Articles\
**Tags:** business\
**Created:** [November 1, 2024, 3:23pm UTC](https://onehack.st/t/microsoft-sees-big-profits-despite-huge-ai-spending/294870 "2024-11-01T15:23:57Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![TheJoker](https://onehack.st/user_avatar/onehack.st/thejoker/32/22660_2.png) [@TheJoker](https://onehack.st/u/TheJoker)\
**Post date:** [November 1, 2024, 3:23pm UTC](https://onehack.st/t/microsoft-sees-big-profits-despite-huge-ai-spending/294870/1 "2024-11-01T15:23:58Z")

</div>

**Summary:**

1. **Strong Financial Results**  
Microsoft reported **$65.6 billion** in sales for the fiscal quarter from July to September, marking a **16%** increase year over year.

2. **Profit Growth Amid Spending**  
Despite investing **$20 billion** in capital expenditures—almost double from the same quarter last year—profits still rose by **11%**.

3. **AI’s Role in Growth**  
The growth was driven largely by **Azure and cloud services** , which saw a **33%** revenue increase, with **12%** of that attributed to AI-related products.

4. **Gaming Division Performance**  
The Xbox division experienced a **61%** increase in content and services revenue, even with a **29%** decline in hardware sales, largely thanks to the recent **$69 billion Activision** acquisition.

5. **Investor Confidence**  
Microsoft’s ability to balance aggressive AI spending with strong financial performance has eased concerns among investors regarding its long-term strategy.

**Read more at:** [Ars Technica](https://arstechnica.com/gadgets/2024/10/microsoft-reports-big-profits-amid-massive-ai-investments/)