Morgan Stanley analyst Keith Weiss thinks Microsoft’s Azure unit has significant potential for growth. He believes Azure AI’s gross margins could already reach around 20%, even after accounting for revenue sharing with OpenAI. This prediction suggests that Azure is performing better than expected, and Weiss is optimistic about its future prospects.
Source: https://seekingalpha.com/news/4532691-microsoft-azure-ai-margins-are-positive-revenue-likely-to-top-estimates-ms