Microsoft lifts 2026 AI spend by $25 billion to cover component price rises
Microsoft has increased its projected 2026 capital expenditure by $25 billion to $190 billion due to rising component costs driven by surging demand for AI infrastructure. Despite spending heavily, the company expects to remain capacity-constrained through 2026 while continuing its aggressive investment in datacenters and hardware. Wall Street has expressed concerns over the return on investment, as infrastructure spending has outpaced revenue gains from AI services so far.
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Off-Prem Microsoft lifts 2026 AI spend by $25 billion to cover component price rises Will write checks for $190 billion and even those megabucks may not satisfy demand Tobias Mann Thu 30 Apr 2026 // 01:15 UTC If you've felt the sting of surging hardware prices, Microsoft can sympathize because the company on Wednesday said it expects its 2026 capital expenditure will hit $190 billion, with $25 billion of that due to rising component costs. Memory and storage prices have skyrocketed since last northern autumn, in some cases more than tripling in price, with demand for AI infrastructure squarely to blame. Despite higher costs, Redmond appears undeterred in its quest to win the AI arms race.
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