Satya Nadella says "CPUs are just as important as GPUs" for AI agents

Microsoft’s latest quarterly report showed revenue 18% higher than the same period last year, with cloud services leading the gain and the stock jumping 16%. During the investor call, CEO Satya Nadella discussed the processing requirements of AI agents and stressed that conventional processor chips still have a central role alongside dedicated graphics accelerators. Microsoft has been spending heavily on data-center hardware, expects to generate positive free cash flow in fiscal 2027, and said its Azure business passed $100 billion in revenue for the fiscal year. AMD research says early AI setups used one conventional processor per four to eight graphics chips, with newer agent-focused systems moving closer to a one-to-one split. Microsoft also named AMD’s Helios and Nvidia’s Vera Rubin as planned infrastructure. The emphasis on conventional chips could benefit AMD and Intel.