Microsoft spends $6.5 billion less than expected on AI infrastructure, but it's not because the company is cutting back
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In brief: It's a rare sight these days to see a tech giant admit it spent less money on capital expenditures than expected. But the $6.5 billion less that Microsoft spent than Wall Street forecast wasn't a sudden outbreak of unexpected restraint. It was delayed data centers that pushed some of its spending back.
Microsoft spent $45.2 billion on capital expenditures, including finance leases, in the September quarter, compared with the $51.7 billion expected by analysts cited by the Financial Times. That's still around 30% more than a year earlier, illustrating just how expensive the AI infrastructure race has become.
Redmond has now cut its calendar 2026 spending forecast from $175 billion to $170 billion, which is still an astronomical figure, admittedly.
CFO Amy Hood blamed delayed capacity deliveries from third parties,...
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