Key facts
- Microsoft will report quarterly sales for its Azure cloud computing unit.
- Azure generated $29.4 billion in sales in Microsoft's most recent quarter.
- Microsoft is shifting to two reporting segments: 'Agents and Infra' and 'Devices and Consumer'.
- The 'Agents and Infra' segment includes cloud services, AI software, and traditional business software.
- Microsoft CEO Satya Nadella stated AI represents a profound shift in technology and business.
Microsoft announced it will begin reporting quarterly sales for its Azure cloud computing unit, a move that will allow for direct comparison with its main rivals, Amazon.com and Alphabet's Google. This strategic shift comes amid a significant boom in AI-driven data center infrastructure.
The company is restructuring its financial reporting segments from three to two. The new "Agents and Infra" segment will consolidate its cloud computing services, revenue from AI-based software, and income from traditional business software. The second segment, "Devices and Consumer," will cover the Windows operating system, the Xbox gaming division, and advertising sales from both Bing search and the LinkedIn professional network.
Microsoft CEO Satya Nadella highlighted the transformative nature of artificial intelligence, stating in a release that "AI represents a profound shift in both technology and business." He added that AI is reshaping product development, operational methods, and business models.
Microsoft serves as a primary cloud computing provider for OpenAI. While OpenAI previously exclusively used Microsoft's services for training its models, recent deal adjustments have allowed it to also utilize Amazon Web Services and other providers. Amazon Web Services reported sales of $128.7 billion in calendar 2025.