Microsoft announces $60B buyback and dividend increase amid AI push

Microsoft Corp. announced a significant $60 billion share repurchase program and a 10% increase in its quarterly dividend to $0.83 per share. This decision comes amid a strategic shift within the company, which has recently increased its investment in artificial intelligence infrastructure, reporting a 77.6% rise in capital expenditures for the quarter ending June 30. Despite a slowdown in growth for its Azure cloud business, Microsoft anticipates a rebound in growth during the latter half of fiscal 2025. The company has also undergone restructuring, including job cuts in its gaming division following the $69 billion acquisition of Activision-Blizzard. This restructuring aims to enhance operational efficiency and streamline its gaming portfolio. Additionally, Microsoft has restructured its business unit reporting, moving some advertising revenue under the Azure cloud-computing unit, reflecting a focus on integrating its services. Microsoft's commitment to artificial intelligence is further demonstrated through its partnership with OpenAI, which is pursuing a $150 billion valuation. This collaboration underscores Microsoft's strategy to advance artificial general intelligence and maintain a competitive edge in the rapidly evolving AI sector. The appointment of Carolina Dybeck Happe as the new EVP and COO is part of this initiative to strengthen cloud services and AI capabilities. In after-hours trading, Microsoft's stock rose by 0.73%, contributing to a year-to-date increase of 16.30%. The upcoming annual shareholders meeting on December 10 will likely address these developments and the company's future direction in the tech landscape.