Microsoft earnings: Stock falls as company forecasts Azure cloud slowdown

In his view, there’s “a huge adverse selection problem today where people it’s just a bunch of tech companies still using VC money to buy a bunch of GPU,” he said on the earnings call, referring to venture capital and graphics processing units. But Microsoft is “not even participating in most of that because we are literally going to the real demand, which is in the enterprise space or our own products, like GitHub Copilot or M365 Copilot,” he added.