Over the past year, Microsoft has been actively increasing the capacity of its Azure cloud computing platform, particularly to accommodate customers who require resources for training and running artificial intelligence applications. The costs associated with this expansion effort are now becoming evident. In the second quarter, Microsoft's capital expenditures, primarily related to the purchase of hardware and software, surpassed $10. 7 billion. This figure represents a 23% increase compared to the same quarter in the previous year and stands as the company's highest quarterly capex ever recorded.

Chief Financial Officer Amy Hood recently informed investors that these expenditures are expected to continue rising over the next four quarters. Following a series of fires on freighters carrying electric vehicles, including a recent incident near the Netherlands that resulted in the death of a crew member and injuries to seven others, shipping companies have appealed to international maritime regulators to establish safety regulations for the transportation of EVs. In the most recent accident, the Fremantle Highway, a 650-foot vessel, caught fire on July 26 during its journey from Bremerhaven, Germany. By subscribing, you can gain access to exclusive coverage, receive a daily summary of top tech news, and enjoy our mobile app and weekly podcast, where our top reporters and executives provide in-depth insights into various topics such as startups and autonomous vehicles.