diff --git a/azure/images/README.md b/azure/images/README.md
index 6e94bad..e58570d 100644
--- a/azure/images/README.md
+++ b/azure/images/README.md
@@ -14,5 +14,11 @@ regions         = ["uksouth", "ukwest", "westeurope"]
 ## Init and upload images
 
 ```shell
+wget https://github.com/siderolabs/talos/releases/download/v1.2.0-alpha.0/azure-amd64.tar.gz
+tar -xzf azure-amd64.tar.gz && mv disk.vhd disk-x64.vhd
+
+wget https://github.com/siderolabs/talos/releases/download/v1.2.0-alpha.0/azure-arm64.tar.gz
+tar -xzf azure-arm64.tar.gz && mv disk.vhd disk-arm64.vhd
+
 terraform init && terraform apply
 ```
diff --git a/azure/images/gallery.tf b/azure/images/gallery.tf
index 5723634..3b4d988 100644
--- a/azure/images/gallery.tf
+++ b/azure/images/gallery.tf
@@ -33,7 +33,7 @@ resource "azurerm_shared_image" "talos" {
   identifier {
     publisher = var.name
     offer     = "Talos-${lower(each.key)}"
-    sku       = "1.0-dev"
+    sku       = "1.2-dev"
   }
 
   tags = merge(var.tags, { type = "infra" })
@@ -98,7 +98,7 @@ resource "azurerm_image" "talos" {
 
 resource "azurerm_shared_image_version" "talos" {
   for_each            = { for name, k in azurerm_storage_blob.talos : name => k.url }
-  name                = "0.0.1"
+  name                = "1.2.0"
   location            = var.regions[0]
   resource_group_name = data.azurerm_resource_group.kubernetes.name
   gallery_name        = azurerm_shared_image.talos[each.key].gallery_name
diff --git a/azure/images/versions.tf b/azure/images/versions.tf
index b0fe4cf..7fb8e2f 100644
--- a/azure/images/versions.tf
+++ b/azure/images/versions.tf
@@ -3,7 +3,7 @@ terraform {
   required_providers {
     azurerm = {
       source  = "hashicorp/azurerm"
-      version = "3.10.0"
+      version = "3.13.0"
     }
   }
 }