AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.

"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online

The tech giants vow to barrel ahead despite the jolt from China’s DeepSeek.

Microsoft reported lower-than-expected revenue growth for its AI and cloud divisions as scrutiny grows over tech's AI investments.

Microsoft on Wednesday posted disappointing Azure cloud business growth and large artificial intelligence expenses, hitting its shares as a recent surge in low-cost Chinese AI technology threatens to undermine the case for such big spending.

Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year,