Investors grow concerned that AI expenses and a looming price war in cloud services could blow up its profits.

Microsoft reported second-quarter earnings and revenue that beat Wall Street estimates on Wednesday. The stock, however, was dropping. The company reported earnings of $3.23 a share on revenue of $69.

Microsoft said its cloud-computing business will continue to grow slowly in the current quarter as the company struggles to build enough data centers to handle demand for its artificial intelligence products.

Microsoft confirmed it will bring the DeepSeek R1 model to Azure cloud and GitHub in a move that it hopes will lessen its reliance on OpenAI's models.

Microsoft has brought one of DeepSeek's models to its cloud, and says that 'distilled' versions of the model will come to Copilot+ PCs soon.

Microsoft Corporation (MSFT) launched the highly popular DeepSeek R1, a powerful AI model, on its Azure cloud platform GitHub for developers.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft MSFT.O dropped 4.7% after forecasting disappointing growth in its cloud computing business. Meta Platforms META.O rose 4.5% after beating estimates for fourth-quarter revenue, but forecast that first-quarter sales might miss estimates.

Stocks are ticking higher on Wall Street following a rush of profit reports from some of the country’s most influential companies. The S&P 500 rose 0.3% in early Thursday trading. The Dow Jones Industrial Average slipped 14 points,