The WSJ Reports:
The Redmond, Wash., company has been ramping up its spending on data centers and other infrastructure to host the rising AI demand. That spending has sent some of Microsoft’s capital expenditures soaring.
Microsoft said its capital expenditures were $14 billion last quarter, a marked increase from the $11.5 billion the company spent the preceding quarter.
On a conference call after earnings were announced, Chief Financial Officer Amy Hood said that the company will continue to increase spending.
She said the customer demand for AI services is beyond what Microsoft is able to provide, pushing the company to pour more money into building its infrastructure.
Microsoft projects revenues of between $63.5 billion and $64.5 billion in the quarter through June.
Microsoft’s AI success has helped push its market value above $3 trillion this year. It has surpassed Apple’s, making it the world’s biggest company by that measure.
Over the past 12 months, its stock has climbed 45%, while the Nasdaq Composite Index rose 32% and Apple shares gained 4%.
