Microsoft said on Wednesday it will begin reporting sales from its Azure cloud computing unit on a quarterly basis, enabling a direct sales comparison with major competitors Amazon.com and Alphabet’s Google as the three companies vie for market share in a rapidly expanding AI data center market.
Until now, Microsoft published a frequently watched growth rate for Azure but did not provide explicit sales figures for the unit. The company also announced it will consolidate its current three reporting segments into two. The first, named "Agents and Infra," will encompass cloud computing services, revenue from AI-based software and receipts from more traditional business software. The second new segment, "Devices and Consumer," will cover the Windows operating system, the Xbox gaming division and advertising revenue generated across its Bing search engine and the LinkedIn professional network.
"There’s no question AI represents a profound shift in both technology and business," Microsoft CEO Satya Nadella said in a statement accompanying the change. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
The company is an important cloud provider to OpenAI. The article states OpenAI exclusively used Microsoft for training its models until modifications to the terms of its deal permitted the company to work with Amazon Web Services and other providers.
For context on the competitive cloud landscape provided in the announcement, Amazon Web Services reported $128.7 billion in sales in calendar 2025, a figure Microsoft cited as part of the broader market reference.
The shift in reporting aims to align Microsoft’s public financial disclosures more closely with how the cloud and AI markets are structured, while offering investors clearer visibility into Azure’s revenue scale by presenting it as a standalone sales figure each quarter.
Sectors affected: technology, cloud infrastructure, enterprise software and digital advertising.