<ul><li>Microsoft has reduced its spending on artificial intelligence after 10 consecutive quarters of increased spending, indicating a slight pullback in the tech industry's appetite for A.I. investments.</li><li>In the first quarter of 2025, Microsoft spent $21.4 billion on capital expenses, down more than $1 billion from the previous quarter, but is still on track to spend over $80 billion on capital expenses for the fiscal year ending in June.</li><li>Despite the decreased A.I. spending, Microsoft reported strong business results with sales exceeding $70 billion, up 13%, and profits increasing to $25.8 billion, up 18% from the previous year, surpassing Wall Street's expectations.</li><li>According to Satya Nadella, Microsoft's CEO, cloud and A.I. technologies are crucial for businesses to expand output, reduce costs, and accelerate growth.</li></ul>

Microsoft Profit Increases 18% While It Slows A.I. Spending

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