Microsoft's growth in its Azure cloud business accelerated by 40% in the March quarter, surpassing its own forecast. The company's revenue rose by 18% to $82.9 billion, beating the $81.4 billion analyst consensus, and earnings per share jumped by 23%. In its earnings news release, Microsoft revealed that its AI business has reached an annual revenue run rate of $37 billion, up 123% from a year ago. Capital spending decreased from $37.5 billion the previous quarter due to timing of data center construction and hardware deliveries, not a slowdown in demand for cloud and AI services. The results have raised questions about Microsoft's ability to translate record capital spending on AI infrastructure into stronger financial results.