“I would expect the pressure between first-party usage and being able to meet Azure demand will persist, as I said, but we are doing our best to get things in as quickly as we can—hence the CapEx number that we see in the second half of the year.”

In context

“on the number. In terms of allocation, you should assume—based on what you were seeing in Azure—looking for 39 to 40 in constant currency in Q4 means that we are able to use some to make sure we are able to meet demand as we can, and do that in a balanced way across Azure. Our Copilot usage in Q3 has really been on a different trajectory than we saw up to this point. That applies across coding, across productivity, and I have some confidence it will also apply across security. When we talk about some acceleration into what I would call the first half of FY '27—the second half of the calendar year—it means we are getting insights into our abilities to increasingly put pressure on efficiencies, speed up the deliveries into our data centers, and make that revenue-ready as quickly as we can. I would expect the pressure between first-party usage and being able to meet Azure demand will persist, as I said, but we are doing our best to get things in as quickly as we can—hence the CapEx number that we see in the second half of the year. Karl Keirstead: Okay. Terrific. Thank you. Jonathan Neilson: Thanks, Karl. Operator, next question, please. Operator: The next question comes from the line of Brent Thill with Jefferies. Please proceed. Brent Thill: Thanks, Amy. One of the big pushbacks we all get is that AI is going to be really expensive, yet you, Google, and Amazon are showing higher margins tonight as you report. What are investors missing, and why is AI a potential better margin for the industry over time? Amy Hood: Thanks, Brent. We have been talking about where this AI business of ours has been in the cycle compared to the cycle we saw with the cloud, which now seems very long ago, and how margins were actually better and have remained better in our AI business versus where we saw them in the cloud transition looki”