Microsoft is adopting a global strategy for its AI infrastructure rollout, moving away from its previous geo-specific cloud transition approach.

The company is making substantial investments in AI infrastructure, with cloud-related spending comprising nearly all of its capital expenditures, focusing on building and leasing data centers for future monetization.

To address capacity constraints in its AI infrastructure, CFO Amy Hood revealed that Microsoft has partnered with third parties to help alleviate some of these challenges.

Looking ahead, Microsoft plans to scale its AI infrastructure to meet increasing demand, anticipating accelerated Azure growth in the latter half of the fiscal year as capital investments boost AI capacity.

CEO Satya Nadella emphasized that the company’s AI strategy is driven by customer demand and value creation.

Microsoft reported significant growth in AI adoption, boasting over 60,000 Azure AI customers, marking a nearly 60% increase year over year.

The uptake of Microsoft’s AI development tools is also impressive, with over 480,000 organizations utilizing AI capabilities in Power Platform, reflecting a 45% increase quarter over quarter.

In the developer space, GitHub Copilot has seen strong enterprise adoption, with over 77,000 organizations using it, representing a 180% increase year over year.

Microsoft 365 Copilot is gaining traction among knowledge workers, with daily usage nearly doubling quarter over quarter.

Large enterprises are increasingly investing in AI, with the number of customers with over 10,000 seats more than doubling, including major firms like Capital Group, Disney, and EY, which will deploy Copilot to 150,000 employees.

In the healthcare sector, over 400 organizations have adopted DAX Copilot, indicating a 40% increase quarter over quarter.