Microsoft plans record capex for AI cloud as revenue surges to $54.5 billion and run rate tops $37 billion

Two thirds of spending goes to GPUs and CPUs

Microsoft’s latest quarter delivered 29% cloud growth, with Microsoft Cloud revenue hitting $54.5 billion. Total revenue rose 18% to $82.9 billion and net profit climbed 23% to $31.8 billion. The company’s AI annual revenue run rate now exceeds $37 billion, but management warns it’s supply constrained through 2026 while capex ramps to an estimated $190 billion for 2026.