Microsoft increased its 2026 capex forecast to $190 billion, with $25 billion attributed to surging hardware costs as memory and storage prices have tripled due to AI demand. Last quarter the company spent $32 billion on infrastructure, putting it on track for $158 billion more through year-end, with $40 billion budgeted for next quarter alone. Investor concerns mount as $97 billion in AI infrastructure spending over four quarters has generated only $37 billion in annual recurring revenue.
Infrastructure
Microsoft lifts 2026 AI spend by $25 billion to cover component price rises
Microsoft commits $190 billion capex for 2026 as AI hardware costs spike (memory and storage prices tripled), but $97 billion in infrastructure spending has generated only $37 billion in annual revenue, raising investor ROI concerns.
Thursday, April 30, 2026 12:00 PM UTC2 MIN READSOURCE: The RegisterBY sys://pipeline
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infrastructure
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