Microsoft has reported impressive earnings with a 16% increase in quarterly sales, reaching $65.6 billion, largely driven by its investments in artificial intelligence (AI). The company noted a significant boost from AI services, leading to record profits and heightened demand for cloud services. However, despite these strong results, Microsoft has forecasted a slowdown in growth for its Azure cloud business, which has raised concerns among investors about sustainability. Despite beating expectations with nearly $25 billion in quarterly profits, shares dipped due to the disappointing outlook for Azure growth. The company also highlighted an increase in gaming revenue, bolstered by its successful acquisition of Activision Blizzard, although overall hardware sales remain down.