The Globe and Mail reports in its Thursday edition that Microsoft exceeded expectations for quarterly cloud revenue, suggesting its artificial intelligence investments are yielding results as Wall Street becomes cautious about Big Tech's debt-driven spending. A Reuters dispatch to The Globe reports that it also generated $18.6-billion in free cash flow in its fiscal first quarter ended September -- some $10-billion more than expected -- as capital spending came in below Microsoft's own forecast (all figures U.S.). That set it apart from rivals such as Alphabet and Meta, whose heavy AI investments have squeezed free cash flow and increased their reliance on borrowing. Alphabet reported negative free cash flow of $9.07-billion in the third quarter as capital spending jumped, overshadowing a doubling of its cloud sales and sending its shares down 8 per cent in extended trading. Microsoft shares rose 2.6 per cent in extended trading, paring earlier gains. The stock has risen about 9 per cent so far this year, through Wednesday's close. Its five-year credit default swaps -- a measure of perceived default risk -- remain the tightest among the largest tech companies, even as spreads have widened across much of the AI trade.