Microsoft disclosed quarterly sales figures for its Azure cloud computing division for the first time, offering a direct comparison with its main competitors, Amazon.com and Alphabet's Google, as all three vie in the computing market during an AI data center surge.

Microsoft reported that Azure achieved $29.4 billion in revenue in its latest quarter and $101.9 billion in revenue during its most recent fiscal year that concluded on June 30. The numbers position Microsoft after Amazon, which had cloud sales of $42.2 billion in its latest quarter, but before Google, which announced $24.8 billion in cloud sales for its most recent quarter.

Microsoft had earlier disclosed a closely monitored growth rate for Azure, but did not reveal its sales figures. Microsoft is reducing its reporting segments from three to two: the first, named "Agents and Infra," will encompass its cloud computing services, sales from AI-driven software, and earnings from more conventional business software, while the second, titled "Devices and Consumer," will incorporate its Windows operating system, Xbox gaming division, and advertising income from both its Bing search engine and LinkedIn, the professional social networking site.

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"AI undoubtedly signifies a significant transformation in technology and business," stated Microsoft CEO Satya Nadella in a statement regarding the transition. "It is altering what we create and how we function, while also merging the lines between our offerings and redefining our business structures."

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Microsoft revised its quarterly forecast provided to investors last month, making a small reduction to its Azure revenue expectations.

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However, it indicated that the adjustments were due to the reclassification of certain sales from GitHub, its code-hosting platform, which were earlier classified with Azure, to now being categorized with its M365 Cloud software division, encompassing the majority of its advanced AI products. Microsoft's forecast for the current quarter stays the same.