Microsoft Cloud tops $63B as AI buildout keeps scaling, says Nadella
thedealdirector · x · 2026-11-14
Infra Play #168 recaps the Q3 earnings calls of key AI infrastructure players. Despite widespread bubble talk, the largest players keep scaling datacenters with cash flow and credit — payback period on 1GW of compute is currently about one year.
Microsoft highlights:
- Microsoft Cloud revenue surpassed $63B with growth accelerating to 30% YoY
- Biggest Copilot update yet unifies Chat, Cowork, Autopilot and Code into one experience with all of Office built in
- Automated tasks nearly doubled since July; daily users up 50% QoQ and over 5x YoY
- User satisfaction up nearly 20% QoQ to an all-time high; 90% of Copilot queries use Auto mode, which dynamically routes tasks across models
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