Meta becomes major Microsoft Azure AI customer

Meta Platforms has become one of Microsoft's largest AI customers, spending hundreds of millions of dollars annually to access AI models through Microsoft's Azure cloud service. Meta uses trillions of tokens weekly via the platform, primarily to support its software development and model evaluation. This relationship highlights the concentration of AI demand within the tech industry, as Microsoft's largest AI customers are mostly other tech companies, including ByteDance, Adobe, Perplexity, and Sierra. Microsoft remains heavily reliant on OpenAI, which contributed about 70% of its AI revenue in the most recent fiscal year. Meta is also building its own API service to sell AI model access, which could compete with Microsoft's Foundry marketplace and reduce Meta's reliance on external providers. Both companies declined to comment on the report.