It’s the second voluntary buyout offer that Microsoft has offered employees this year, after giving 7% of its US workforce the option to retire early in April.

Microsoft had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.

Earlier this month, Microsoft also announced a new Surface Ultra laptop that runs on Nvidia’s artificial intelligence chips and will cost more than US$2500.

The launch is part of a broader push by tech companies to release hardware that can handle more AI computing on-device and offline, so users do not have to rely solely on remote cloud data centres, where running AI is slower and more expensive.

Microsoft will hold a call with analysts on Wednesday afternoon to discuss its quarterly results.

Shares in Google owner Alphabet plummet on profit miss, ad slowdown

Shares in Google parent Alphabet fell more than 10% in after-hours trading Wednesday as the company reported lower-than-expected profit and a slowdown in its advertising business while it maintained big spending on AI.

Net profit slid 25% from a year earlier to US$26.2 billion in the July-to-September period, or US$2.12 per share, well short of expectations by analysts surveyed by FactSet.

Alphabet booked an US$8.7 billion loss on its equity investments, which it attributed to its stake in SpaceX, the Elon Musk-led company where shares have struggled since going public in June.

Revenue rose 25% to US$127.6b, slightly below the about US$128b analysts had forecast.

Advertising revenue grew 11% to US$82.0b, short of expectations. Revenue from Google’s search business, still the company’s largest source of income, rose 12% to US$63.4 billion, slowing from 17% growth in the previous quarter.

YouTube, now the most-watched content provider on American TV screens, saw advertising revenue grow 9% to US$11.2b, down from 13% growth in the previous quarter. YouTube Music and Premium passed 150 million subscribers worldwide, including trials.

Google Cloud, which rents computing power and AI tools to businesses, saw revenue jump 103% to US$30.7b, ahead of analyst expectations.

The company said sales of its in-house AI chips, known as TPUs, contributed significantly to that growth. Operating income for the unit tripled to US$11.1b.

Google is also selling its TPU chips to outside companies, in a growing challenge to market leader Nvidia. OpenAI plans to buy some of the chips, according to media reports this week.

Alphabet’s “Other Bets” division, which includes robotaxi company Waymo, posted revenue of US$372 million and an operating loss of US$2.0b.

Waymo now provides more than 500,000 paid rides per week across 15 US metropolitan areas and aims to reach one million weekly rides by the end of the year.

‘Long-range planning’

Alphabet spent US$51.4 billion on capital expenditures during the quarter, mostly on data centres and AI chips, more than double the US$24 billion a year earlier.

Its latest forecast for capex spending is between US$195b to US$205b in spending for 2026.

The company said it would continue to increase capex spending significantly in 2027.

“I would broadly think of all of this as a long-range planning process, not a short-term allocation exercise,” Google chief executive Sundar Pichai told analysts of the company’s investment splurge.

The company’s spending, which included a fine paid to the European Union, outstripped the cash generated by Alphabet’s businesses for a second straight quarter, leaving a US$9.1b gap.

During the quarter, Alphabet raised US$28.7 billion by selling bonds and US$12.4 billion by issuing new shares to help pay for its AI ambitions.

Google has stepped up the pace of its AI releases since a delay to a flagship model in July raised questions about whether it was falling behind rivals OpenAI and Anthropic.

It launched Gemini 4 at the end of September and later released a version focused on cyber security.

The Gemini app has reached one billion users. Google’s AI models now process nearly 32 billion tokens, or units of text, per minute, more than four times the level of a year ago, the company said.

Anthropic, the maker of the Claude chatbot, is also one of Google’s largest cloud customers. It has committed to using up to one million Google AI chips.

In September, a US judge declined to order Google to sell off parts of its advertising technology business, imposing restrictions on how it operates instead.

– AFP