Recently, Microsoft has run into obstacles in the sales of its enterprise - grade artificial intelligence services. As reported by The Information, Microsoft has slashed sales quotas for certain AI products by as much as 50%. In the past, Microsoft's Azure division mandated that its sales staff spur a 50% hike in customer spending on the "Foundry" product. But less than one - fifth of the sales force managed to hit this mark. Consequently, Microsoft has dialed down its growth target for the current fiscal year to roughly 25%. A Microsoft spokesperson refuted these claims, asserting that the company has not trimmed sales quotas or targets for its sales personnel. Still, in reaction to this news, Microsoft's stock price took a hit, plummeting by over 2%. In recent times, Microsoft has made substantial investments in the artificial intelligence arena. For the fiscal year 2025, its full - year revenue hit $281.724 billion, with the cloud business raking in $168.9 billion. Azure's annual revenue surpassed $75 billion, marking a 34% year - on - year increase, with the AI business acting as the driving force behind its growth. However, Microsoft is also grappling with infrastructure bottlenecks. Shortages in data center capacity and hardware components are constraining its capacity to meet the demand for AI services, which could potentially affect its revenue growth in the cloud market.