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2026-04-04 01:53:49
[Analysts: Microsoft's AI Development May Pressure Azure's Short-Term Growth] A report by TD Cowen analysts noted that Microsoft is developing its own cutting-edge AI models, planned for release in 2027. This process requires significant computing power, which may limit the growth prospects of the company's Azure business. They pointed out that Microsoft's CFO has indicated that computing resources will be prioritized for internal R&D, and this shift may already be reflected in Microsoft's expectations for the current fiscal quarter. These analysts stated, "We do feel this will limit the growth potential of the Azure business and its ability to accelerate growth again." They predict that once the computing power required to train new models begins to decrease, computing power may be reallocated to Azure by mid-2027.
