Microsoft shares fell in Europe on Thursday after it issued a downbeat forecast for its cloud business, while Facebook parent Meta shares rose after beating expectations, as investors scrutinised the companies' spending on artificial intelligence.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year, and net income of $24.1 billion, which is up 10 percent year-over-year.

AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.

The tech giants on Wednesday talked up their AI strategies and said they are sticking with ambitious investments in the technology despite the investor panic this week over the ri

Microsoft Corp. said its cloud-computing business will continue to grow slowly in the current quarter as the company struggles to build enough data centers to handle demand for its artificial intelligence products.

The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

In its own research, DeepSeek said it had “distilled” models from its R1 system based on other open-source systems. Unlike OpenAI’s closed systems, some models such as Meta’s Llama are open-source and freely available for use.

Microsoft reported that its flagship cloud computing business experienced a slowdown in growth amid constraints on data center supply.

Microsoft made DeepSeek's groundbreaking R1 AI model available on the Azure AI Foundry platform as well as GitHub.

Microsoft MSFT.O has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday. The AI model will be available in the model catalog on the platforms and will join more than 1,800 models that Microsoft is offering.

Microsoft is testing a better integration between iPhone and Windows 11 PCs. Here is what the iPhone Mirroring-ish feature will look like.