Microsoft has reported an 18% increase in quarterly sales, reaching $77.7 billion, surpassing Wall Street expectations

CNBC's Steve Kovach reports on Microsoft's fiscal first-quarter earnings results. Senator, brother, officer indicted in federal extortion, conspiracy case

The company is seeing more demand for its cloud computing and AI services than it can keep up with, a challenge that is supercharging profits.

Microsoft's AI infrastructure spending to meet growing cloud services demand is outpacing Wall Street expectations, deepening investor fears about the costs of sustaining the boom.

On Wednesday, the company reported spending a larger-than-expected $34.9 billion on new projects in the three months through Sept. 30 as it races to build data centers that provide computing power to fuel the A.I. boom, a 74 percent increase from a year earlier.

To turn on the Xbox FSE, “on supported devices, go to Settings > Gaming > Full screen experience, then select Xbox as your home app,” Microsoft says. “Once enabled, you can access FSE from Task View and Game Bar or configure your handheld to enter full screen experience on startup.”

Wall Street is expecting the company to report adjusted earnings per share of $3.68 on revenue of $75.5 billion, according to Yahoo Finance.

Inside Microsoft’s earnings was a charge that caught analysts by surprise: a $4.1 billion hit on its investment in OpenAI. The figure was up 490% from a year earlier. It implies a more than $12 billio