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 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.

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.

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 Corporation (MSFT) market capitalization fell by $200 billion on January 30 after the company reported weak growth in its cloud