Microsoft kept its capital spending forecast unchanged on Wednesday, becoming one of the first data center giants to maintain control of the industry’s rampant AI spending. Shares rose about 8% on the news. Earlier this year, the company said it planned to spend $190 billion on capital expenditures this calendar year. On Wednesday’s earnings call,
Big Tech earnings season begins next week with Google, but the most important number won’t be profits or revenue. It will be how much these companies say they will spend on AI data centers. Google, Amazon, Microsoft and Meta have already laid out plans to spend more than $700 billion this year. Investors know that
Three years ago, Sequoia partner David Cahn was one of the first people to crunch the numbers and calculate the implications of Silicon Valley’s titanic spending on AI infrastructure. In 2023, it was reacting to Nvidia’s annual GPU revenue of $50 billion. From that figure, and adding the implicit costs of operating the data centers
