Microsoft is reshaping the way it reports its business, putting its Azure cloud computing operation under a new reporting structure that will give investors a clearer view of the money generated by the fast-growing unit as competition in artificial intelligence infrastructure intensifies.
The technology giant said on Wednesday that it will begin reporting Azure sales on a quarterly basis, a significant change from its previous practice of disclosing Azure primarily through its closely watched growth rate without providing a standalone sales figure.
The move is expected to make it easier for investors and analysts to compare Microsoft's cloud business directly with Amazon.com's Amazon Web Services (AWS) and Alphabet's Google Cloud, the three major players competing for business as companies around the world increase spending on computing capacity needed to develop and operate artificial intelligence systems.
Microsoft will also reorganise its financial reporting from three business segments into two. The new structure will consist of "Agents and Infra" and "Devices and Consumer," reflecting the company's view that artificial intelligence is increasingly cutting across traditional product and business boundaries.
The Agents and Infra segment will include Microsoft's cloud computing services, revenue from AI-based software and sales from its more traditional business software offerings. The Devices and Consumer segment will bring together the company's Windows operating system, Xbox gaming business and advertising revenue generated through Bing and LinkedIn, its business-oriented social networking platform.
Microsoft Chief Executive Officer Satya Nadella said the changes reflect the broad impact artificial intelligence is having on the technology industry and on the company's own operations.
"There's no question AI represents a profound shift in both technology and business," Nadella said in a statement accompanying the change. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
The decision to disclose Azure sales comes as cloud computing has become increasingly important to the technology industry's AI expansion. Building and running advanced AI models requires enormous amounts of computing power, specialised chips and data-centre capacity, creating a surge in demand for cloud infrastructure.
Microsoft is also deeply connected to the AI ecosystem through its relationship with OpenAI, the developer of ChatGPT. Microsoft has been a major cloud computing provider to OpenAI, which for a period relied exclusively on Microsoft's infrastructure for training its AI models.
That arrangement has since evolved. Changes to the terms of the agreement between the companies have allowed OpenAI to work with other cloud providers, including Amazon Web Services, broadening the competitive landscape for AI-related computing demand.
Amazon's cloud division remains a major force in the market. AWS recorded $128.7 billion in sales in calendar 2025, underscoring the scale of the cloud infrastructure business as technology companies compete to capture spending associated with AI and conventional cloud services.
By reporting Azure sales directly, Microsoft will provide the market with another important measure for assessing the performance of its cloud operation against its two largest rivals.
The reporting overhaul also signals how Microsoft is attempting to present itself to investors at a time when artificial intelligence is increasingly integrated into products that were previously viewed as separate businesses. Its cloud infrastructure, AI software and established business applications are becoming more closely connected as customers adopt AI-powered tools.
For Microsoft, the new disclosures could provide investors with greater visibility into whether the massive investments being made in data centres and AI infrastructure are translating into sustained revenue growth. For the broader cloud industry, the figures could offer a clearer picture of how rapidly businesses are shifting their technology spending toward AI-driven computing.
The change therefore represents more than an accounting adjustment. It provides a new lens through which investors will assess Microsoft's position in one of the technology industry's most closely contested markets — the race to supply the computing infrastructure behind the AI boom.