(Reuters) -Microsoft ( MSFT ) on Wednesday cut its first-quarter intelligent cloud forecast, the technology giant said in an investor presentation.

The company reported slowing growth in its cloud business in July even after the tech giant spent billions of dollars in artificial intelligence to upgrade its products and services.

The company said cloud and AI-related capital spending would take up nearly all of its expenditures. Microsoft ( MSFT ) said cloud growth would accelerate in the second half of fiscal 2025.

The company now expects intelligent cloud revenue to be between $23.80 billion and $24.10 billion, compared with its prior expectations of $28.6 billion and $28.9 billion.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Arun Koyyur)