Microsoft significantly exceeded earnings expectations for the June quarter and disclosed its standalone annual Azure revenue for the first time — providing new clarity into how it stacks up against Amazon and Google in the cloud.

The Azure cloud business is a centerpiece of Microsoft's efforts to shift its focus to artificial intelligence, but until Wednesday the company hadn't disclosed how much money it makes.

Microsoft’s Azure cloud platform generated over $75 billion in annual revenue, marking a 34% year-over-year growth. The company also posted a quarterly profit of $34.3 billion, beating analyst expectations.

The tech giant expects total net sales to be between $174.0 billion and $179.5 billion in the third quarter, compared with analysts’ average estimate of $173.08 billion.

Amazon.com shares AMZN.O fell 7% on Friday as the tech giant's results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race.

The UK’s cloud computing market is “not working well” and conduct requirements should be considered for the sector’s two main players, Microsoft and Amazon, according to the competition watchdog.The final report from an independent inquiry group of the Competition and Markets Authority (CMA) has found that Microsoft and Amazon Web Services (AWS) are hurting competition in the cloud computing sector.