Microsoft spending increases, cloud computing slightly surpasses expectations, triggering concerns about the return on investment for artificial intelligence.

Microsoft's quarterly revenue announced on Wednesday was only slightly higher than expected, with its key cloud computing business revenue also growing significantly, disappointing investors seeking higher returns in fierce competition. Its stock price plummeted over 7% in after-hours trading. Microsoft said revenue for its Azure cloud division in the second quarter grew by 39%, a number higher than the market's general expectation of 38.8%. The company has long held a leading edge in the artificial intelligence race among large tech companies, thanks to its early investment in OpenAI. OpenAI's technology supports most of Microsoft's products, including M365 Copilot. However, Google's latest Gemini model and the release of autonomous intelligent entities like Claude Cowork from Anthropic pose risks to Microsoft's AI business and its long-standing software products. With investors continuously questioning whether large tech companies can generate enough returns to offset investments in artificial intelligence, this has put pressure on Microsoft's stock price.