Microsoft announced Wednesday that it has expanded its cloud and AI infrastructure in Europe and will follow local laws, hours before the company announced better-than-expected earnings. The expansion will allow each country to "fully use these technologies to strengthen their economic competitiveness,

Worry that a slowing economy will derail artificial intelligence-fueled growth this year may take a back seat after Microsoft over-delivered in its latest quarterly earnings report. Related: Surprising GDP report sends stocks on roller coaster ride Microsoft outpaced Wall Street earnings estimates on revenue and profit,

Cloud growth has helped push Microsoft earnings past Wall Street estimates.

Microsoft earnings are coming, and questions about the company’s artificial intelligence spending, cloud performance, and customer strength will all be heavily watched metrics when the results hit. Microsoft is scheduled to report third-quarter financial results after the stock market closes on Wednesday.

President Trump’s tariff policies have sparked trade war and recession fears. Morgan Stanley predicts the odds of a recession at 40%, while JP Morgan Chase put chances at 65%, according to Quartz.

Microsoft CEO Satya Nadella told Meta CEO Mark Zuckerberg that a big chunk of the tech giant's code is now written by AI.

Microsoft and Google, say AI is writing more of their code — and Mark Zuckerberg predicts AI could handle half of Meta's dev work within a year.