Microsoft dropped 10%, shedding more than $350 billion in market value after its cloud business failed to impress, while Meta gained 10%.

With Microsoft spending many billions on data centers, and rumors that no one is using its AI, CEO Satya Nadella shared some usage numbers.

Shares dropped the most since March 2020 on Thursday, with investors fleeing the stock amid slower cloud growth and big spending on AI.

Microsoft CEO Satya Nadella talks Copilot, Azure, AI, agents, OpenAI and more on the company’s Q2 earnings call.

Microsoft says its own chip leapfrogs those made by other cloud providers like Amazon and Google. But it needs more.

Microsoft just rolled out Copilot upgrades that make it easier to pick up old chats, handle longer prompts, and use Copilot on Mac and iPhone. Some features arrive in waves, starting with memory in the US.

Microsoft's capital expenditures, viewed as a barometer for artificial-intelligence spending, may have topped a milestone figure in the latest quarter. The company hasn't spent upwards of $20 billion on capital expenditures in any quarter going back at least to the end of 2021,

In its fourth quarter earnings report, Meta said capital spending plans for 2026 should be in the range of $115-$135 billion, well ahead of consensus forecasts.

With its newest AI chip, Microsoft plans "wider customer availability" after its initial product was only used for internal projects.