$MSFT

Microsoft's Satya Nadella reported that the company's custom AI chips achieve up to 40% efficiency gains, reducing reliance on OpenAI. This could lower costs and improve margins for Microsoft's AI infrastructure, which is expected to reach $190B in 2026. Azure grew 40-45% in FY26, with contracted AI revenue backlog up 84% YoY to $678B.

Microsoft (MSFT) has shifted its cloud growth narrative from migrations to usage-based pricing, focusing on AI and infrastructure. Cloud revenue grew 27% to $214B in fiscal 2026, while total revenue reached $331B. Copilot revenue on GitHub surged over 60% quarterly, but Azure's margins were pressured by capacity constraints. On-premises server revenue declined 1% year-over-year.

Keeper Security launched a certified Microsoft Power Platform connector for its Secrets Manager, available on Azure Logic Apps and Power Automate. The connector allows users to manage credentials securely without hardcoding them, addressing cybersecurity risks. Keeper's zero-knowledge architecture ensures secrets remain encrypted and are retrieved only when needed. The integration supports five operations and is designed for easy deployment. Keeper aims to enhance security in cloud automation en

Microsoft issued a patch for a critical Copilot vulnerability in the personal version, nearly eight months after confirmation, according to Microsoft and Varonis. Varonis reported the CoSnitch flaw, involving auto-execution, data exfiltration, and persistent memory poisoning. Microsoft said customers are protected and no action is needed.

Alphabet reported Google Cloud revenue grew 82% YoY to $24.8B. Microsoft's Azure grew 43%, and Amazon's AWS grew 37% to $42.2B. Google Cloud's operating income tripled, and its backlog reached $514B, driven by AI and enterprise demand.

US stocks are mixed, with chipmakers and AI-infrastructure stocks rising, while software companies decline. Treasury Secretary Bessent announced upcoming economic measures against Iran. S&P 500 is tracking for 32% Q2 earnings growth, with 85% of companies beating estimates. Marvell (MRVL) and Sandisk (SNDK) lead gains, while Datadog (DDOG) and Salesforce (CRM) lead losses. Astera Labs (ALAB) and Onto Innovation (ONTO) received upgrades, while EyePoint (EYPT) plunged after a failed trial.

St. Joseph County Council will vote on expanding a tax increment finance (TIF) district to include Microsoft's data center in Granger. If approved, all tax revenue from the center will fund local development. Supporters argue it addresses area needs, while opponents worry about limited countywide benefits and environmental impacts. The vote is scheduled for August 25.

Wall Street declined Tuesday as Treasury yields surged to 19-year highs, hurting tech stocks. S&P 500 fell 0.7%, Nasdaq dropped 1.3%. Tech companies issued $121B in bonds in 2025. Oil prices rose, and investors await Fed minutes and earnings from Nvidia and Broadcom. Home Depot reported strong Q2 results, shares unchanged.

Cursor, an AI-powered code editor, launched a code hosting platform to compete with Microsoft's GitHub. The move targets developer frustration with GitHub's recent changes and aims to leverage Cursor's existing user base. Cursor's platform integrates AI features with its editor, offering intelligent code review and collaboration tools. GitHub, acquired by Microsoft for $7.5 billion, faces challenges from Cursor and other competitors like GitLab. Cursor's success depends on convincing developers

Game developers protested outside ZeniMax in Rockville against Microsoft's layoffs at Bethesda Game Studios (BGS), a subsidiary of Xbox. Microsoft cited restructuring for long-term success, denying AI replacement. Employees expressed concerns about the impact on games like 'Fallout' and 'The Elder Scrolls'. Union negotiations continue.