Microsoft Azure revenue expected to exceed company forecasts due to increased demand for reasoning driven by GPT-5.

Thanks to the release of GPT-5 by OpenAI, the demand for AI reasoning among users of the free version of ChatGPT has skyrocketed. Combined with longer computing times for each query, these factors may drive Microsoft Azure's revenue growth this quarter to surpass the company's forecasts and propel its AI business to double its revenue next year. Estimates show that by 2026, Microsoft's total revenue from AI business will reach $42 billion, accounting for approximately 12% of its total revenue, significantly higher than other cloud providers. Additionally, it is expected that there will be an improvement in demand for GitHub and M365 Copilot.