Microsoft Cloud hits $63B quarter at 30% growth as AI buildout keeps scaling
thedealdirector · x · 2026-11-03
Infra Play #168 takes the pulse of the AI buildout via Q3 earnings calls: despite bubble fears, major players keep scaling datacenters with cash flow and credit — the payback period on 1GW of compute is currently about a year, a key tension with conservative shareholders. From Nadella: Microsoft Cloud revenue passed $63B with growth accelerating to 30% YoY. Copilot got its biggest update yet, unifying Chat, Cowork, Autopilot and Code into one experience across commercial and consumer, with all of Office built in — pitched as "the new OS for work." Automated tasks nearly doubled since July; daily users up 50% QoQ and over 5x YoY; satisfaction up 20% QoQ to an all-time high; 90% of queries use Auto mode, which routes tasks across models for quality.
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