Microsoft is set to make a record $30 billion capital expenditure in the current fiscal quarter, driven by the surging demand for its Azure cloud computing services and AI capabilities. This investment marks a 24% increase from the previous quarter, where $24.2 billion was spent. A significant portion of this capital will be allocated to acquiring CPUs and GPUs, which are crucial for expanding AI capacity. The remaining funds will be invested in long-term assets that are expected to generate revenue for over 15 years.
This substantial investment underscores Microsoft's commitment to leading the AI revolution and scaling its cloud infrastructure to meet the growing demands of businesses across various sectors. Microsoft's Azure cloud platform revenue has already surpassed $75 billion for the fiscal year, showing a 34% increase, fuelled by AI demand and overall workload growth. CEO Satya Nadella highlighted that cloud and AI are the primary drivers of business transformation, with Microsoft innovating across its tech stack to support customer adaptation and growth.
Microsoft's financial results for fiscal Q4 2025 revealed an 18% year-over-year increase in quarterly revenue, reaching $76.4 billion. This performance has boosted investor confidence, with analysts predicting further market value increases as Microsoft continues to invest heavily in AI and related technologies.
