Cloud Computing

Microsoft’s fiscal Q1 exceeded expectations, driven by a 40% Azure revenue surge. While overall revenue rose 18% to $77.67 billion, and net income increased, the stock dipped due to anticipated capex increases for AI and cloud infrastructure. The Intelligent Cloud unit generated $30.9 billion, surpassing estimates. Microsoft anticipates continued growth, forecasting $79.5-$80.6 billion for fiscal Q2. Microsoft’s investment in OpenAI impacted net income by $3.1 billion.

Amazon’s stock faces pressure amid concerns about AWS growth compared to rivals Azure and Google Cloud. While AWS remains a key profit driver, its recent growth lagging behind competitors has fueled concerns about its cloud dominance. A recent AWS outage further amplified these anxieties. Analysts believe Amazon’s recovery depends on AWS growth acceleration through innovation and enhanced reliability, needing aggressive investment in new technologies to stay competitive and maintain customer trust.

A significant Amazon Web Services (AWS) outage disrupted access to numerous online platforms and applications, including Amazon’s own e-commerce platform, Disney+, Lyft, and more. AWS cited an “operational issue,” with analysts speculating about cascading failures or software bugs. While recovery signs emerged quickly, the incident highlighted the risks of centralized cloud computing and the potential for widespread disruption. The outage is prompting renewed discussions about multi-cloud strategies to mitigate reliance on a single provider and enhance resilience for mission-critical services.

Sify Technologies (NASDAQ: SIFY) will release its Q2 FY2025-2026 financial results on October 25, 2025, before market open. A conference call to discuss results will be held on October 27, 2025, at 8:30 AM ET, hosted by Raju Vegesna and M P Vijay Kumar. Sify, a leading Indian ICT solutions provider, focuses on data centers, cloud, networks, and security, catering to India’s digital economy. Webcast and replay details are available on Sify’s website.

Oracle’s shares rose after projecting significant revenue growth driven by AI infrastructure. The company forecasts $20 billion in AI-powered database revenue by fiscal year 2030, a substantial increase from previous estimates. Oracle secured $65 billion in new cloud infrastructure commitments this quarter, including a major deal with Meta. The company is expanding its cloud infrastructure, competing with Amazon and Google, and offers its database solutions on rival platforms. Oracle also secured a commitment from OpenAI valued at over $300 billion. They project adjusted earnings per share of $21 on $225 billion in revenue for fiscal 2030.

CoreWeave (CRWV) shares jumped nearly 12% after announcing a $14.2 billion AI cloud infrastructure deal with Meta (META). This follows a $6.5 billion expanded agreement with OpenAI, totaling $22.4 billion. CoreWeave specializes in high-performance computing using Nvidia GPUs, catering to the growing demand for AI and machine learning workloads. Meta’s commitment includes options for expansion through 2032, reflecting its broader investment in AI. Meta projects significant expenses for AI initiatives, including the launch of its first supercluster, highlighting the increasing competition and opportunity in the AI cloud market.

Nebius Group shares surged in premarket trading after announcing a $19.4 billion agreement with Microsoft. Nebius will provide cloud computing power for AI workloads, generating an expected $17.4 billion in revenue through 2031. The deal highlights the increasing demand for specialized AI infrastructure. Nebius, which spun off from Yandex in 2023, specializes in GPUs for AI model training and boasts investors like Nvidia and Accel. The partnership also boosted shares of competitor CoreWeave, reflecting broader optimism in the AI infrastructure market.

Alibaba’s Hong Kong shares surged over 19% driven by strong cloud computing results and AI chip development news. Cloud revenue grew 26% YoY, fueled by AI services, with AI-related product revenue experiencing triple-digit growth for the eighth consecutive quarter. The company’s investments in AI and its entrance into China’s competitive “instant commerce” market are viewed favorably despite temporary earnings pressure. Overall, positive sentiment followed a solid earnings report with significant net income increase and promising e-commerce revival signs.

Alibaba (BABA) reported a mixed Q1 fiscal year performance. Net income beat expectations with a 78% jump, driven by equity gains and the Trendyol sale. Revenue, however, fell short of estimates. Cloud computing revenue soared 26%, fueled by AI demand, with AI-related product revenue growing at a triple-digit rate for the eighth consecutive quarter. Despite macroeconomic headwinds in China, Alibaba’s stock showed resilience. Investors are optimistic about AI initiatives and investments.

As the demand for AI computing resources grows, Alibaba Cloud introduces cost-effective solutions. A basic cloud server is priced at $68/year, while the “Bailian LLM + Cloud Server” bundle, ideal for LLM inferencing, is available for a limited time at $119 (originally $1029.19). This bundle includes a standard cloud server and a Bailian LLM Inferencing Savings Plan. This offer lowers the barrier for AI development, especially for developers, SMBs, and research teams. New users can deploy LLM inferencing affordably, but supplies are limited.