Microsoft's CEO reported that the company processed over 100 trillion tokens in the latest quarter, a fivefold increase year-over-year, including a record 50 trillion tokens in the last month alone. The company's AI technology now supports production workloads across more than 70,000 enterprises. Microsoft's cloud business is experiencing robust growth, with run rate revenues expected to reach approximately $179 billion by the end of fiscal year 2025 and a trailing five-year compound annual growth rate of around 26%. This growth is driven by a combination of factors, including enterprise migration, shifts in in-house product usage, OpenAI consumption, and AI-related demand, while competitors such as AWS and Google Cloud Platform show signs of macroeconomic slowdown. Since Microsoft began reporting Azure growth figures in fiscal year 2016, constant currency revenues have increased by at least 30% year-over-year in every quarter except one. Industry experts highlight that global demand for compute capacity could nearly triple by 2030, with AI workloads accounting for 70% of that demand. Hyperscale cloud providers, including Microsoft, Amazon, Google, Oracle, SAP, and Nvidia, are increasing capital expenditures by about 30%, with spending expected to continue rising. Despite a large gap between AI spending and AI-generated revenues among the four major hyperscalers—totaling $440 billion in 2024 and projected $596 billion in 2025—there is an observed increase in revenue from cloud services, which likely encompasses most AI activities.