Microsoft builds and operates Azure, a hyperscale cloud platform that provides compute (VMs), storage, networking, and AI infrastructure to enterprises and developers. The company has become a major force in AI infrastructure through its deep partnership with OpenAI, integration of GPUs (primarily Nvidia), and development of custom silicon such as Azure Maia (AI accelerator) and Cobalt (ARM-based CPU). Microsoft also embeds AI services across its software stack, from Azure AI to Copilot products, driving demand for its underlying compute platform.

Azure has emerged as one of the top two global cloud platforms, benefiting from enterprise distribution and tight integration with Microsoft’s software ecosystem. The company is investing heavily in data centers and custom silicon to reduce reliance on third-party chips and improve margins. Microsoft is looking to add more than 2GW of capacity in their data centers this year, with large campuses in Wisconsin and Arkansas under construction.