Microsoft Azure Cloud Sales Exceed $75 Billion, Challenging Amazon's Dominance

Microsoft has revealed that its Azure cloud-computing unit generated over $75 billion in sales for the 2025 fiscal year, placing it behind Amazon's AWS cloud business. Azure's sales increased 34% during the fiscal year, driven by the AI boom and the company's shift towards internet-delivered software. The result marks a significant milestone for Microsoft, which has been building Azure for over a decade.

Microsoft's Azure cloud-computing unit has generated over $75 billion in sales for the 2025 fiscal year, according to a recent announcement. This marks a significant milestone for the company, which has been building Azure for over a decade. The sales figure represents a 34% increase compared to the previous fiscal year, driven by the ongoing AI boom and Microsoft's shift towards internet-delivered software.

The strong performance of Azure has been a key factor in Microsoft's overall growth. The company's shares rose more than 6% in extended trading following the announcement, reflecting investor confidence in the cloud business. However, it is important to note that Azure still trails market leader Amazon Web Services (AWS), which had an earlier start in cloud computing and brought in $107.56 billion in its most recent fiscal year [1].

Microsoft's success with Azure can be attributed to its early leadership in AI. The company's exclusive access to OpenAI's technology has been a significant advantage, attracting numerous businesses to its cloud service and enabling swift rollouts of AI products such as the M365 Copilot AI assistant for enterprises [1].

However, there have been some challenges related to the OpenAI tie-up. The companies are currently renegotiating the deal, with reports indicating a deadlock over access to OpenAI's technology and its stake if the startup converts into a public-benefit corporation. To mitigate this, Microsoft has been developing in-house AI technology and partnering with other organizations to broaden its model lineup [1].

Despite these challenges, Microsoft's Azure continues to be a strong performer. The company's capital spending rose 27% to $24.2 billion in the April-June period, highlighting its commitment to overcoming supply constraints and meeting soaring AI demand [1].

In conclusion, Microsoft's Azure cloud-computing unit has achieved a notable milestone with over $75 billion in sales for the 2025 fiscal year. The growth, driven by AI and internet-delivered software, underscores the company's strategic focus and investment in cloud technologies.

References:
[1] https://www.reuters.com/business/microsofts-azure-cloud-revenue-surges-ai-spending-pays-off-2025-07-30/