Microsoft to spend record $30b as AI investments pay off
Microsoft has announced a record-breaking $30 billion in capital spending for its current fiscal quarter, driven by soaring demand for AI and cloud services.
The company revealed that annual sales from its Azure cloud platform have exceeded $75 billion for the first time, beating analyst expectations.
This surge comes amid growing competition, with Google and Meta also ramping up AI-related investments. Microsoft’s AI-powered tools, including Copilot, now have over 100 million monthly active users.
In Q4, Microsoft’s overall revenue rose 18% year-over-year to $76.4 billion, while Azure revenue grew by 39%, surpassing forecasts.
"I feel very good that the spend that we're making is correlated to basically contracted, on-the-books business that we need to deliver," Microsoft Chief Financial Officer Amy Hood said on a conference call with investors.
With capital expenditures expected to hit $330 billion across Big Tech this year, Microsoft appears well-positioned to lead the AI race.
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