Microsoft CapEx Surges to $140 Billion Annually From $28 Billion Two Years Ago

What was said

"In just the 6 months, the first 6 months of the 2026 fiscal year, CapEx is more than $70 billion and the guidance is between $120 to almost $150 billion. And for context, in fiscal 2023, CapEx was in total $28 billion."

Microsoft's capital expenditure has exploded to projected levels of $120-150 billion annually, compared to just $28 billion in fiscal 2023, as the company races to build AI infrastructure. Two-thirds of quarterly CapEx goes toward short-lived GPU assets with 3-5 year useful lives, creating massive future depreciation charges. The unprecedented spending raises ROI questions, as Azure would need to generate $17-20 billion in incremental annual revenue just to break even on the capital costs.