Microsoft denies reports of 20% cloud cuts to offset AI spending

The Information reported that Azure Core president Girish Bablani directed leaders to draft plans to cut costs by at least 20% to offset AI data center spending. Microsoft called the report "inaccurate and careless," denying that Azure leadership ordered cost-cutting plans. Microsoft's fiscal 2026 capital expenditures hit $145.3 billion, while Azure revenue for the 12 months ending in June reached $101.9 billion, up 40%.

• The Information: Azure Core told to cut costs by at least 20%
• Microsoft calls report "inaccurate and careless," denies cuts ordered
• Microsoft fiscal 2026 capital expenditures reached $145.3 billion
• Azure revenue for 12 months to June: $101.9 billion, up 40%