Microsoft cuts capex forecast on AI capacity delays
Source: Business Insider ·
CFO Amy Hood cited delays in third-party capacity as Wall Street scrutinizes returns on AI spending.
From the source
Microsoft CEO Satya Nadella.Dimitar DILKOFF / AFP via Getty ImagesMicrosoft lowered its 2026 capex forecast to $170 billion, down from $175 billion.CFO Amy Hood cited delays in third-party capacity as Wall Street scrutinizes returns on AI spending.Azure revenue jumped 48%, beating expectations, while Microsoft's headcount fell 2%.Microsoft reduced its forecast for capital expenditure, a rare move in an industry that mostly continues to splurge more on huge AI investments.The software giant said capex for the 2026 calendar year will be $170 billion from a previous forecast of $175 billion.Chief Financial Officer Amy Hood gave the forecast on the company's fiscal first-quarter earnings call on Wednesday.She said Microsoft was expecting new capacity to arrive from third-parties, but some of these "GPU-as-a-Service contracts" have been delayed until the second half of the fiscal year.This likely refers to other providers of AI cloud services that use Nvidia GPUs to run their offerings.…