“Our focus is clear: delivering real-world AI solutions while simultaneously globally scaling our cloud and AI infrastructure,” wrote Microsoft CFO Amy Hood in her memo to the employees, urging them to stay focused on delivering real-world AI solutions amid “a lot of AI-related news this week,” including Chinese startup DeepSeek’s cost-efficient AI model and the $500 billion Stargate infrastructure project.
In an internal memo obtained by Business Insider, Hood stressed that Microsoft “remain[s] steadfast in the priorities which are required to deliver on that product promise — security, quality, and AI innovation.” The directive came as Microsoft reported its second-quarter earnings, with AI business revenue soaring 175% year-over-year to $13 billion annually.
Hood’s emphasis on “support[ing] our partners and customers as they adopt, build, and grow” comes at a critical time for the AI industry. Chinese startup DeepSeek recently challenged conventional wisdom with an AI model matching OpenAI‘s capabilities at lower costs, while the newly announced Stargate joint venture between OpenAI, Oracle, and SoftBank promises massive infrastructure investments; on this, Microsoft CEO had also remarked that he’s good for his $80 billion, purportedly the company’s investment into the project.
The timing of Hood’s message, thanking employees for their “focus as we work together for our customers who rely on us,” coincides with Microsoft’s ambitious plans to invest $80 billion in AI-enabled data centers during fiscal year 2025. This commitment comes despite recent market skepticism, as Microsoft’s stock declined following slower-than-expected growth in AI and cloud computing services.
While the company reported 12% overall quarterly revenue growth to $69.6 billion, Azure and cloud services growth of 31% fell short of expectations, though AI services contributed 13 points to that growth.