Microsoft leadership has reportedly requested plans for at least a 20% cost reduction in its Azure cloud division. The move comes despite strong Azure revenue growth, as the company spends heavily on data centers to meet surging demand for AI services.
Microsoft shares closed at a record $543.45 the previous day, reflecting investor confidence in its AI strategy. Potential measures, which remain under consideration, could include reducing outsourced personnel. The review highlights pressure to control the operating costs of expanding AI infrastructure and maintain profitability.