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Microsoft CFO tells employees in an internal memo to 'focus' amid AI news like DeepSeek and Stargate

Jan 29, 2025 - businessinsider.com
Microsoft CFO Amy Hood urged employees to maintain focus amid recent AI developments, including news from Chinese AI startup DeepSeek and a joint venture called Stargate. Despite AI and cloud computing services growing less than expected, Microsoft reported strong financial results for the second quarter, with revenue up 12% to $69.6 billion and Microsoft Cloud revenue increasing by 21% year-over-year. The company's AI business achieved an annual revenue run rate of $13 billion, up 175% from the previous year.

Hood emphasized the importance of delivering real-world AI solutions and scaling cloud and AI infrastructure to support partners and customers. She highlighted the company's priorities of security, quality, and AI innovation. Microsoft invested $22.6 billion in capital expenditures to meet demand for its cloud services, including AI workloads. Despite some challenges, the company saw growth in various sectors, including Microsoft 365, Dynamics 365, and LinkedIn, while gaming revenue decreased due to hardware issues. Hood encouraged employees to align their efforts with the company's priorities and commitments.

Key takeaways:

  • Microsoft CFO Amy Hood urged employees to focus amid recent AI news and infrastructure spending concerns.
  • Microsoft reported its AI and cloud computing services grew less than expected, causing a drop in stock price.
  • Microsoft plans to invest about $80 billion in AI-enabled data centers in its 2025 fiscal year.
  • Despite challenges, Microsoft's AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.
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