Nadella: Renting AI to "like 4 customers" not a business, even as Azure jumps 48%

Nadella's remarks came on a call where Microsoft's results otherwise supported its growth case. Revenue rose 19% to $92.3 billion, and Azure grew 48%, but Nadella drew a distinction between the enterprise customers he wants and large buyers he will tolerate only "as long as the pricing is right." That stance is easier to hold because demand exceeds supply: Amy Hood said customer demand continues to exceed available supply, and capex of $45.2 billion came in below her July 29 guide of over $50 billion as some third-party capacity deliveries were delayed. A company short on supply can afford to be choosy on price.

The context also includes Microsoft's own exposure to large customers. Commercial remaining performance obligation rose 73% to $677 billion, while commercial bookings fell 12%, which Hood tied to large Azure commitments in the prior year. Microsoft recorded $10.0 billion of revenue from commercial arrangements with OpenAI, about 10.8% of the total. For comparison, CoreWeave reported three unnamed customers at 36%, 26% and 10% of revenue for the June 2026 quarter, and S&P Global Ratings estimates OpenAI accounts for roughly half of Oracle's $638 billion in remaining performance obligations. Microsoft's push to spread AI across many enterprise workflows appears aimed at reducing that concentration over time.