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.

On Jan. 30, Microsoft showed off the latest Surface for Business Copilot+ PCs, Surface Laptop 7 and Surface Pro 11. Both will be on store shelves Feb. 18. Just a day earlier, the company announced all users of the Microsoft Copilot AI assistant will be able to toggle on OpenAI’s o1 model for slower, more “thoughtful” responses.

At an event in New York City on Thursday, Microsoft unveiled two additions to the Surface line of PCs. The new Surface Pro and Surface Laptop both arrive with Copilot+ PC certification. Announced in May 2024,

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 MSFT.O has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.

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 reported that its flagship cloud computing business experienced a slowdown in growth amid constraints on data center supply.