Microsoft Faces Capacity Constraints From OpenAI Backlog

Microsoft said on Wednesday in its Q2 earnings call that remaining performance obligations rose 110% year over year to $625 billion, and OpenAI accounts for roughly 45% of that backlog. Executives including CEO Satya Nadella and CFO Amy Hood warned of capacity constraints as capital expenditures rose 66% to $37.5 billion, pressuring Azure availability and drawing investor concern.