Dan Gallagher

So it's a pretty complicated setup and they're trying to use AI in a number of ways.

One, they're trying to develop it internally to make their own processes better.

They're powering AI computing for companies like OpenAI, which is a very big customer for them.

And they're also trying to drive people like us

to use things like Copilot at work.

Copilot is their AI software that we can use to run spreadsheets, to make PowerPoints, all these sorts of things.

So they have this kind of more complex task.

And one thing the recent report showed is that all these companies don't have as much AI computing capacity as they'd like to have.

They talk about being capacity constrained.

And Microsoft has had to make that different parts of that capacity available for different parts of its business.

And they intentionally decided that

not to put as much capacity towards its cloud business that's the most closely watched by investors.

So the cloud revenue growth wasn't quite what investors wanted to see.

And that's why you're seeing the stock sell down a lot on that report.

Driving AI adoption is just trickier for them because ultimately it's going to depend on how many businesses adopt AI, use it in a way that drives business to Microsoft.

And that's just a longer thing to do.

Google's had a lot of things go its way, especially during 2025.

A big thing that helped the stock was the company essentially beat the government's efforts to break it up.

The stock was really underwater before that.

So once the company kind of won those cases and won some very favorable rulings, the stock really started to take off.