Microsoft’s massive AI spending draws investor concerns as cloud business booms

Microsoft’s AI infrastructure spending to meet growing cloud services demand is outpacing Wall Street expectations, deepening investor fears about the costs of sustaining the boom.

The technology giant reported a record capital expenditure of nearly $35 billion for its fiscal first quarter on Wednesday and warned spending would rise this year, in a reversal of its earlier prediction that it would moderate.

Microsoft’s shares fell nearly 4% in extended trading.