Microsoft’s $625 Billion Azure Backlog Mostly OpenAI Bribes, Wall Street Nervous
KEY POINTS
- •In Q2, Microsoft reported a $625 billion backlog, with OpenAI representing about 45% of that amount.
- •CEO Satya Nadella emphasized the importance of acquiring Azure clients while maintaining growth in M365, GitHub, and Dragon Copilot businesses.
- •CFO Amy Hood explained capital expenditures rose 66% to $37.5 billion, funding GPUs split among app development, R&D, and Azure capacity.
Microsoft dazzled Wall Street in Q2 with a whopping $625 billion backlog in commercial bookings, ballooned 110% year-over-year, 45% of which is the special love note to OpenAI, their favorite costly startup. CEO Satya Nadella, who once casually joked about burning a billion dollars on OpenAI when it was 'just a nonprofit,' assured investors Azure growth still matters beyond GitHub, M365, and the mysteriously named 'Dragon Copilot.' Meanwhile, CFO Amy Hood confirmed Microsoft’s gargantuan capital expenditure spiked 66% to $37.5 billion, funding GPU battles between Microsoft Copilot apps, R&D frenzies, and Azure’s cloud capacity — proving that in the AI arms race, spending big means never saying you’re fully clouded. OpenAI’s pledge to spend $250 billion also confirms it’s not just your computer that needs a break, but Microsoft’s patience too.
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Microsoft’s $37.5B GPU binge is like trying to feed a dragon with pennies—OpenAI’s the real queen demanding the feast while the rest of Azure gets crumbs.
They call it a 'backlog' but Microsoft’s $625B of Azure commitments mostly reads like IOUs to child-genius startup OpenAI.
Satya Nadella’s favorite phrase might be: 'Don’t put all your chips in OpenAI,' he just forgot to tell Wall Street.
Source: Businessinsider | Published: 1/29/2026 | Author: Brent D. Griffiths
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