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Microsoft prepares to spend more on AI as its sales and profit surge

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Microsoft prepares to spend more on AI as its sales and profit surge


Mustafa Suleyman, the CEO of Microsoft AI, introduces Mico, short for Microsoft Integrated Companion, the new Microsoft Copilot, a memory-based AI assistant during Microsoft’s Fall 2025 Copilot Sessions event on Wednesday, Oct. 22, 2025, in Los Angeles. Credit: AP Photo/Damian Dovarganes

Microsoft on Wednesday reported its quarterly sales grew 18% to $77.7 billion, beating Wall Street expectations while also surprising some investors with the huge amounts of money it is spending to expand its cloud computing infrastructure and meet demand for artificial intelligence tools.

The said it spent nearly $35 billion in the July-September quarter on capital expenditures to support AI and cloud demand, nearly half of that on computer chips and much of the rest related to real estate.

That overshadowed Microsoft’s report of a 22% increase in to $30.8 billion, or $4.13 per share, which easily beat Wall Street expectations for the period. Microsoft said those results excluded the impacts of money it invested in OpenAI, in an attempt to “help clarify” how those losses affected Microsoft’s core business.

Microsoft was expected to earn $3.67 per share on of $75.38 billion, according to analysts surveyed by FactSet Research.

The results came a day after a new deal with OpenAI pushed Microsoft to $4 trillion in valuation for the second time this year. But shares in Microsoft then dropped in the hours before it disclosed its earnings Wednesday as the company battled an outage affecting its Azure cloud computing platform. They dropped further—by more than 3%—in after-hours trading Wednesday as considered the significance of the earnings report.

Microsoft prepares to spend more on AI as its sales and profit surge
Jacob Andreou, CVP, Product and Growth, Microsoft AI, introduces Mico, short for Microsoft Integrated Companion, the new Microsoft Copilot, a memory-based AI assistant during Microsoft’s Fall 2025 Copilot Sessions event on Wednesday, Oct. 22, 2025, in Los Angeles. Credit: AP Photo/Damian Dovarganes

Driving investor enthusiasm on Tuesday was the announcement of Microsoft’s revised business deal with its longtime partner OpenAI, maker of ChatGPT and now the world’s most valuable startup. While no longer OpenAI’s exclusive cloud provider, a relationship that helped bankroll the startup’s early growth, Microsoft will retain commercial rights to OpenAI products through 2032 and get a roughly 27% stake in OpenAI’s new for-profit arm.

Microsoft also said Wednesday that it has already invested $11.6 billion of the total $13 billion it has committed to OpenAI.

Microsoft’s valuation previously passed $4 trillion in July, making it the second company after Nvidia to reach the milestone. Microsoft again and Apple for the first time crossed $4 trillion this week, while Nvidia went on to achieve a different milestone: the first $5 trillion company.

The sky-high valuations highlight the investor frenzy around artificial intelligence, which some fear could turn into a bust if AI products aren’t as transformative or profitable as promised.

Microsoft prepares to spend more on AI as its sales and profit surge
The logo of Microsoft is seen outside its French headquarters in Issy-les-Moulineaux, outside Paris on May 13, 2024. Credit: AP Photo/Thibault Camus, File

Quarterly revenue from Microsoft’s cloud-focused business segment was $30.9 billion, up 28% from the same time last year and just slightly above what analysts were expecting. Revenue from Microsoft’s workplace software, which includes its email and word processing tools, was up 17% to $33 billion.

Microsoft’s recent focus has centered around pitching its flagship AI assistant Copilot to help with a variety of work tasks, and last week gave it a new animated avatar exterior called Mico.

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I Tested Garmin Watches for a Decade While Hiking, Biking, and Climbing. Here’s What You Should Buy

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I Tested Garmin Watches for a Decade While Hiking, Biking, and Climbing. Here’s What You Should Buy


Last year, Garmin introduced a Pro version that incorporates the inReach’s satellite communications savvy. Not only does it cost at least $400 more than the Apple Watch Ultra and $200 more than the regular Fenix 8, but you also have to pay for the inReach subscription plan, which has several tiers and ranges from $8/month to $50/month depending on whether you want features like unlimited texting or sending photo messages.

What you get for this mind-boggling price is a sports watch that can do anything and everything. It has best-in-class battery life (every Fenix can last for weeks on a single charge, and up to a month with solar charging) and features like the depth sensor from Garmin’s Descent line, which means this watch works as a full-on dive computer for scuba and free diving. It has a microphone and speaker for basic voice commands (although no onboard cellular connectivity), the surprisingly useful built-in LED flashlight, and Garmin’s signature built-in topographic maps, 24/7 health monitoring, and tracking for over a hundred different activities.

I’ve taken the 51-mm version on pretty much every outdoor sport—snowboarding, trail running, mountain biking, and rock climbing. Every time I use it, its capabilities far outclass my own. I have irritated many a fellow climber by attempting to track route difficulty, duration, and falls while integrating my Body Battery metrics and so on. The danger is always that you’ll spend more time fiddling with your Garmin Fenix 8 than you do with your actual sport. I have the version with the sapphire glass face and the titanium bezel, and have smashed it into rock faces with nary a scratch. If you’re up for paying the price and want a good-looking watch that will last forever (I have friends who are still wearing their Fenix 5s and 6s, and honestly, they’re fine), this is the one to get.

Best Running Watch

The Garmin Forerunner series launched in the early 2000s and has become the quintessential runner’s watch. Like all Garmins, the Forerunner comes in a range of price points, each offering different features. Last year, Garmin released the Forerunner 570 ($550), a midrange model with no LED flashlight or onboard maps, and the Forerunner 970 ($750), which is the premium version. Before I go into detail about why the Forerunner 970 is the best option, I should also say that I have tested many previous Garmin Forerunners at various price points. If you’re not a triathlete, the older Forerunners are still worth considering, and the entry-level $200 Forerunner 165 is aimed explicitly at runners, instead of including triathletes as the more expensive models do.



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Save Up to 40% With These Acer Promo Codes and Discounts

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Save Up to 40% With These Acer Promo Codes and Discounts


Acer is one of the top largest PC manufacturers in the world, perhaps best known for its gaming line and budget-friendly options. If you’ve already got your eye on an Acer product like a laptop or monitor, and are shopping at the company’s online storefront, you should be using one of these Acer promo codes and coupons to save some cash on your purchase.

Save 40% on Accessories When You Build an Acer Bundle

If you’re buying from Acer, you’re most likely shopping for either a desktop PC or laptop. With this discount, you can get a really solid deal on accessories if you bundle it with a mouse, laptop bag, or headset. When you go to purchase a PC, just click “Build Bundle” and you’ll see some of the eligible options, all of which are reduced by 40%. The Nitro Mechanical Keyboard, for example, goes from $50 to just $30. That 40% is a real discount, too, as that same keyboard costs $50 on Amazon when I checked.

Beyond peripheral add-ons, you can also save 10% off Acer Care Plus extended service plans or McAfee LiveSafe antivirus subscriptions. You can bundle up to five products together to save the most money. If you’re headed off to college (or have a kid in the family), a bundle like this can get you everything you need for a gaming or studying setup on the go.

Shop Rotating Weekly Deals on Monitors and Gaming Gear

Acer’s PC gaming offerings come in either the flagship Predator brand or the budget-tier Nitro. Acer offers rotating weekly deals on everything from monitors to gaming laptops, some of which are my favorites that I’ve tested in their given category. The Acer Nitro V 16, for example, was a budget gaming laptop that I recommended quite a lot last year because of its incredible price. The one I tested was the entry-level version with an Nvidia RTX 5050 inside, but Acer has the RTX 5060 model in its own storefront. It’s $100 off right now at $1,200, which comes with 16 GB of RAM and a terabyte of storage. In fact, it’s only $30 more than the RTX 5050 model, despite offering a significant jump in gaming performance. These discounts are reflected right on the product pages, so there’s no promo code, discount code, or coupon code required.

Acer has a wide selection of monitors available, too, whether that’s a massive 49-incher or a more modest 27-inch gaming workhorse. One of my favorite discounts I saw right now was the Acer Nitro XV2, a 27-inch 1440p display with a 300 Hz refresh rate. It’s 44% off at the time of writing, bringing the price down to just $250. Because these discounts are swapped out on a weekly basis, it’s worth checking back to see if the product you’re eyeing has a new discount.

Select Customers Can Get 15% Off Their Purchase

Acer also offers a number of added discounts at checkout, including 15% off for students. Students will need to verify through Student Beans or SheerID. Because a lot of the devices Acer offers are budget-friendly, they can be attractive for students, and the extra 15% off is the icing on the cake.

We tested the Acer Swift 16 AI last year and really enjoyed the high-resolution, OLED screen and impressively quiet performance. Acer has the smaller version of this same laptop available, the Swift 14 AI, which is currently $150 off. You also might check out the Acer Chromebook Plus 514, a laptop we liked quite a bit when we reviewed it in 2024.

Acer offers this same 15% discount for active duty military, veterans, and their families. It also applies to healthcare professionals, which can be verified through its healthcare discount portal.



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AI Research Is Getting Harder to Separate From Geopolitics

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AI Research Is Getting Harder to Separate From Geopolitics


The world’s top AI research conference, the Conference on Neural Information Processing Systems—better known as NeurIPS—became the latest organization this week to become embroiled in a growing clash between geopolitics and global scientific collaboration. The conference’s organizers announced and then quickly reversed controversial new restrictions for international participants after Chinese AI researchers threatened to boycott the event.

“This is a potential watershed moment,” says Paul Triolo, a partner at the advisory firm DGA-Albright Stonebridge who studies US-China relations. Triolo argues that attracting Chinese researchers to NeurIPS is beneficial to US interests, but some American officials have pushed for American and Chinese scientists to decouple their work—especially in AI, which has become a particularly sensitive topic in Washington.

The incident could deepen political tensions around AI research, as well as dissuade Chinese scientists from working at US universities and tech companies in the future. “At some level now it is going to be hard to keep basic AI research out of the [political] picture,” Triolo says.

In its annual handbook for paper submissions, issued in mid-March, NeurIPS organizers announced updated restrictions for participation. The rules stated that the event could not provide services including “peer review, editing, and publishing” to any organizations subject to US sanctions, and linked to a database of sanctioned entities. It included companies and organizations on the Bureau of Industry and Security’s entity list and those on another list with alleged ties to the Chinese military.

The new rules would have affected researchers at Chinese companies like Tencent and Huawei who regularly present work at NeurIPS. The database also includes entities from other countries such as Russia and Iran. The US places limits on doing business with these organizations, but there are no rules around academic publishing or conference participation.

The NeurIPS handbook has since been updated to specify that the restrictions apply only to Specially Designated Nationals and Blocked Persons, a list used primarily for terrorist groups and criminal organizations.

“In preparing the NeurIPS 2026 handbook, we included a link to a US government sanctions tool that covers a significantly broader set of restrictions than those NeurIPS is actually required to follow,” the event’s organizers said in a statement issued Friday. “This error was due to miscommunication between the NeurIPS Foundation and our legal team.”

Before they reversed course, the conference organizers initially said that the new rule was “about legal requirements that apply to the NeurIPS Foundation, which is responsible for complying with sanctions,” adding that it was seeking legal consultation on the issue.

Immediate Backlash

The new rule drew swift backlash from AI researchers around the world, particularly in China, which produces a large quantity of cutting-edge machine learning papers and is home to a growing share of the world’s top AI talent. Several academic groups there issued statements condemning the measure and, more importantly, discouraging Chinese academics from attending NeurIPS in the future. Some urged Chinese academics to contribute instead to domestic research conferences, potentially helping increase the country’s influence in relevant science and tech fields.

The China Association of Science and Technology (CAST), an influential government-affiliated organization for scientists and engineers, said Thursday that it would stop providing funding for Chinese scholars traveling to attend NeurIPS and would use the money instead to support domestic and international conferences that “respect the rights of Chinese scholars.”

CAST also said it will no longer count publications at the 2026 NeurIPS conference as academic achievements when evaluating future research funding. It’s unclear if the organization will reverse course now that NeurIPS has walked back the new rule.



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