Leaked Microsoft document shows Walmart's past spending on Azure cloud services
At Microsoft's Build developer conference last week, the company's head of AI security accidentally leaked details of its partnership with Walmart.
The leak happened when employees protesting Microsoft's selling products and services to the Israeli military interrupted a presentation at the conference. The executive was streaming and switched over to a Teams message stating Walmart is ready to "rock and roll" on Microsoft services Entra Web and AI Gateway.
Walmart and Microsoft have for years boasted of a partnership, but the companies don't disclose much about the relationship.
A separate leaked document viewed by Business Insider shows just how big of a customer Walmart is.
The document reveals that Walmart spent about $580 million on Microsoft's Azure cloud services between June 2023 and May 2024. Microsoft and Walmart declined to comment.
The software giant discloses relatively few financial details about its crucial cloud operation. Analysts get an Azure percentage growth rate from the company each quarter; they estimate actual revenue.
The document seen by BI provides a rare look at Azure financials and focuses on a key metric within Microsoft called Azure Consumed Revenue. Also known as ACR, this measures the dollar value of Azure services consumed by customers, whether they paid a full retail rate or a discounted rate.
Walmart spent about $580.4 million on Azure cloud services from July 2023 through May 2024, according to the document. The company's monthly ACR went from nearly $50 million in July 2023 to around $45 million in May 2024, with a peak of nearly $61.9 million in November 2023. That peak tracks with ramping up for the holiday season.
Companies don't typically reveal their cloud spending, except when securities laws require them to disclose multiyear cloud commitments. The Information reported last year that TikTok was spending about $20 million per month on Microsoft's Azure OpenAI service, citing a person who had seen the financials.
Walmart and Microsoft in 2018 announced a partnership in which the retail giant would chose Azure as its "preferred and strategic cloud provider." Walmart operates a huge online store and marketplace and, as a rival to Amazon, may be less likely to use Amazon Web Services as a cloud provider.
In 2024, Microsoft and Walmart bolstered their partnership by announcing a generative AI-powered search function built on the Azure OpenAI service. It made Walmart one of Microsoft's marquee generative AI customers.
The internal document obtained by BI isn't clear on which type of ACR is being discussed. Microsoft has different ways to slice ACR. ACR with MACC, or Microsoft Azure Consumption Commitment, includes spending toward a pre-committed amount for which the customer includes a discount. ACR with PIN, or Partner Influenced Number, would also include revenue generated through a partner.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Exclusive-Walmart's Flipkart secures approval for direct lending in India, documents show
By Ashwin Manikandan (Reuters) -Walmart's Flipkart has secured a lending licence from the Indian central bank and banking regulator, enabling it to offer loans directly to customers and sellers on its platform, according to documents reviewed by Reuters and a source. This is the first time the Reserve Bank of India has granted a large e-commerce player in India a non-bank finance company (NBFC) licence, allowing it to lend but not take deposits. Most e-commerce platforms currently offer loans in tie-ups with banks and NBFCs, but a lending licence will enable Flipkart - India's largest e-commerce firm - to lend directly, a more lucrative model for the group. The central bank issued its certificate of registration - a document that officially recognizes a company as an NBFC - to Flipkart Finance Private Limited on March 13. Reuters has reviewed a copy of both the certificate of registration and the approval letter also dated March 13. The approval has not been previously reported. Flipkart, in which U.S. retail behemoth Walmart holds a more than 80% stake, applied for the licence in 2022, according to the central bank's approval letter. Neither Flipkart nor the Reserve Bank of India immediately responded to Reuters' request for comments. The e-commerce giant may commence its lending operation "in a few months", according to a source aware of the matter who declined to be identified as the talks are private. A final decision on the launch will be subject to the completion of various internal processes such as the appointment of key management personnel and board members and the finalisation of business plans, the source said. Flipkart plans to lend directly to its customers on its popular e-commerce platform and through its fintech app the source said. It may also offer financing to sellers on the platform, they added. At present, the e-commerce giant offers personal loans to customers through tie-ups with lenders such as Axis Bank, IDFC Bank and Credit Saison. Flipkart, last valued at $37 billion in 2024 when it raised $1 billion in a funding round led by Walmart, is shifting its holding company from Singapore to India. Walmart also aims to take the 17-year-old company public. Walmart bought a controlling stake in Flipkart in 2018, which also gave it ownership of PhonePe, a fintech firm also preparing for an IPO. Earlier this year Flipkart's rival Amazon acquired a Bengaluru-based non-bank lender Axio, but the deal is yet to be cleared by the central bank. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
34 minutes ago
- Yahoo
Ukraine can make way more weapons than the country can buy. Industry figures say there's a simple fix to unlocking its potential.
Ukraine's industry is growing rapidly amid Russia's invasion, and Ukraine is relying less on allies. But the industry says it has far more capacity that's unused as Ukraine can't spend that much. Industry leaders say there's a simple way that Ukraine's potential can be reached. Ukraine's defense industry says it is prepared to produce much more weaponry than it is currently making. The problem is that the Ukrainian government can't afford the multi-billion-dollar price tag for production. But it says there's a straightforward solution. Ukraine's defense industry has boomed since Russia launched its full-scale invasion of Ukraine, with manufacturers ranging from huge outfits to small companies based in people's garages. These companies are crucial, especially at times when Western support is uncertain. The host of defense companies that have sprung up over the last three years of war has allowed Ukraine to innovate quickly and make weaponry that is well suited to the country's specific fight, and their insights into the demands of modern war have many Western companies keen to collaborate and learn from them. Ukrainian Minister of Strategic Industries Herman Smetanin shared earlier this year that "the capabilities of the Ukrainian defense industry have grown 35 times over the three years of the invasion," up from $1 billion in 2022 to $35 billion now. Industry bodies, each representing around 100 Ukrainian defense companies, told Business Insider that the country's industry is ready to make far more weaponry if someone can fund it, and said it would be a win-win for allies. Serhiy Goncharov, the CEO of the National Association of Ukrainian Defense Industries, which represents around 100 Ukrainian companies, told BI that Ukrainian producers' capacity is more than three times as large as their purchasing power from current budgets. He said Ukrainian defense companies get contracts worth around $11.5 billion, but they have the capacity to make as much as $45 billion in weapons. "We are ready to increase our production. We have the capacity to increase our production," Goncharov said. But for now, "we still work in the limit of the budget of Ukraine." Government officials have shared similar observations. For instance, Oleksandr Kamyshin, then Ukraine's minister of strategic industries, said in April 2024 that Ukraine's defense production capacity was three times as much as its defense budget. Ihor Fedirko, the CEO of the Ukrainian Council of Defence Industry, a body that represents more than 100 companies, told BI "there are huge spare manufacturing capacities." Ukraine's defense companies typically rely on money from the government buying their goods for the military. Units also buy some weaponry and items themselves, but that practice doesn't add up to the same scale or offer businesses the same confidence. Ukraine's government only has so much money, particularly during wartime. Ukrainian industry figures outlined a simple solution, one that is already underway on a smaller scale. It's a new way of supporting Ukraine that was launched by Denmark last year. The model, nicknamed the "Danish model," buys weapons for Ukraine directly from Ukrainian developers instead of purchasing them from European or US companies or taking them from other countries' stockpiles. Goncharov described actions similar to the Danish model as the "simplest" way partner nations can help Ukraine's industry and the one that gives the "fastest result on the battlefield." He said this approach allows Ukraine to increase its production by giving manufacturers financial assurances and confidence. Multiple countries have joined this model, and some others, like Germany, say they are working on their own version of it. The Danish model ensures weapons reach Ukrainian soldiers faster and typically for less money. It also means the weaponry Ukrainian forces need most is prioritized. Goncharov said it helps Ukrainians get "exactly what they need on the battlefield." Through this approach, even if a partner country has limited stockpiles or a limited defense production capacity, it can still "purchase the artillery for Ukraine from Ukraine." Around $550 million worth of weapons procurements were finalized last year and boosted the production of key weapons like the Bohdana self-propelled howitzer. Goncharov said Ukraine's industry has a list of weapons it is ready to increase the production of if it gets money through this type of model. That list includes artillery and armored vehicles. Fedirko said the Danish model is "the largest hope for the private sector." Other options include using frozen Russian assets and joint manufacturing opportunities with foreign companies. Goncharov said he has discussed the Danish model and other options for producing more Ukrainian weaponry with members of the European Commission. Another model he proposed is financing production in Ukraine that depends on a substantial amount of European components. He said many Ukrainian companies import some components from elsewhere in Europe, like some metals and vehicle chassis. He described this as "more complex" and more medium-term than the Danish model, but it's one solution that also benefits European industry, which is ramping up. Europe is watching the war in Ukraine closely, with many countries massively boosting their defense spending and warning that Russia could attack elsewhere on the continent. Countries are hesitant to drain their stockpiles, and new defense orders are creating backlogs in industry, limiting its capacity to produce weapons for others. Many European countries are studying Ukraine's defense industry and its speed, but it's a work in progress. Goncharov said many of Ukraine's international partners are not expanding their defense production fast enough, so Ukraine's industry "has no other options only to grow, to cover our demand." He said working with Ukraine is advantageous for other countries attempting to improve their defenses. They can learn from Ukrainian companies with the advantage of being in direct contact with soldiers and units, allowing them to stay up to date with what is needed against Russia and test their products. "We unfortunately face this situation when we have war on our territory, and it's not our choice, but it is what it is." Read the original article on Business Insider
Yahoo
34 minutes ago
- Yahoo
More people are joining the military. A shaky US job market could be boosting the numbers.
After years of shortfalls, military recruiting numbers are seeing a jump. Economic factors like unemployment rates and job openings impact military recruitment. Recruiting officials say the factors helping drive recruitment are complex. Military recruiting numbers are up — the Army met its annual goal of recruiting 61,000 troops months early and signs indicate Navy numbers are in good shape. But what is it exactly that is driving the jump? Recruiting officials say it's complicated. For the past several years, the Army and Navy fell thousands of new recruits short, a trend that only began to reverse at the end of last year — which the new administration has promoted as stemming from President Donald Trump's leadership and a surge of patriotism. The shift seems to turn on a shaky economy that's hiring less and the soaring costs of higher education, recruiting officials told BI. While the US labor market has relatively low unemployment, layoffs in the federal workforce, federal policy uncertainty, and 2025 recession fears have left companies hesitant to hire and employees less likely to quit. Fewer job openings and a slowing economy have historically pushed more young job seekers toward the military. That doesn't tell the whole story, though. Nearly 75% of young Americans cannot meet the health, fitness, and academic standards required to join the military, presenting a major challenge for recruiters. To confront the problem, the Army and Navy have made herculean efforts to usher not-yet-qualified young people into what are effectively pre-boot camps where they can lose weight, improve run times, and boost their test scores before officially joining. These changes instituted in recent years are paying off with a higher number of recruits in the pipeline, paving the way for the services to better meet their annual goals. But the services may also be benefiting from a shifting economic landscape in which the steep cost of higher education and fewer openings in the traditional labor market could mean that more young people are looking for alternative career paths with a promise of stability and education benefits. Instead of solely focusing on unemployment rates to understand why more and more young people may be choosing to enlist, a more accurate way to view military recruiting is through the lens of the Beveridge Curve, which compares how the unemployment rate stacks up against job vacancies, said Col. Lee Evans, Army Recruiting Command's director of market intelligence. Low unemployment and a high number of job openings indicate a growing labor market. Lately, however, lower unemployment has been met with limited job openings — meaning the economy is slowing, as shown in the chart below. Postings on the job-search platform Indeed decreased by 10% throughout 2024, and the federal nonfarm job openings rate has been trending down since 2022. Job seekers are scrambling as opportunities dry up across tech, computer science, government agencies, and more, factors that could be a boon for military recruiting. "What we've seen over the last couple years is that unemployment rates remain relatively low, right around 4%, but we've seen the job openings rate decrease," Evans said. "Many times, that provides a skills mismatch out in the labor market," he said. "And we're postured well to compete in that arena, because we have so many offerings within the Army." Evans added that in a volatile job market, young people might be more attracted to the military's career opportunities with transferable skills for later civilian life, like working as an electrician or HR specialist. Gen Z is already turning toward traditionally blue-collar technical careers. However, other jobs, including those in combat arms like artillery or infantry, can be much more difficult to transfer to the civilian sector. Brig. Gen. Christopher Amrhein, the commander of the Air Force Recruiting Service, told BI that young people are increasingly seeking jobs in air traffic control, firefighting, and cybersecurity, roles likely to lend a degree of long-term stability outside the service. Amrhein said another positive figure for recruiting is the surplus of soon-to-be recruits waiting in the military's "delayed entry program," which serves as a sort of holding pattern for future recruits to depart for boot camp at a later date. "From that standpoint, we're still garnering more and more talent in our Air Force and Space Force of an unbelievable quality," he added. Economic instability and fewer job openings aren't the only factors at play. The exorbitant cost of college has helped maintain a steady demand for college ROTC programs, Evans said. In 2023, a quarter of US adults under 40 had outstanding student loan debt. The military offers an alternative to debt for future officers: it can cover all or some of a student's tuition in exchange for four to eight years of service. Brig. Gen. Sara Dudley, the deputy commanding general of Army Recruiting Command, told BI that young people appear to be taking more time to decide what path they want to take, be it military service or something else. "It's really a couple of years after high school that they're ready to commit to making what feels like a big decision," she said. Enlisting is enticing for recent high school grads and twentysomethings, a chance to learn new skills and unlock generous education benefits with the GI Bill and tuition assistance programs. Many also carry on a family tradition of service in uniform, a longtime source of recruits that shrinks with each generation. Enlisted troops make up roughly 80% of the force. For those with or pursuing a bachelor's degree, a few years as an officer may be an increasingly attractive way for young people to build professional experience without the stress of student loans or an immediate post-grab job hunt. A similar trend occurred in 2009, following the widespread financial instability of the 2008 recession. America's slower birth rates aren't yet showing up in recruitment data, though the drop seems poised to hit the services soon. In 2007, the US saw over 4.3 million births. But the 2008 financial crisis prompted a drop that has largely persisted since. "That 2007 to 2008 timeframe, that's just now starting to get into our recruitable population," Evans said, referring to the military's eligible pool of young people. Even as military recruitment stands to gain from a costly higher education system and an unsteady job market, lower birth rates could present a new enduring challenge. "We're going to see that come into our recruitable population, and we know we're going to have to adapt to it," he said. "And we're already preparing for that." Have a tip or story to share? Reach out to these reporters at kbaker@ and allisonkelly@ or via Signal at KelseyBaker75.75 and alliekelly.10; here's our guide to sharing information securely. Read the original article on Business Insider
