Since the launch of ChatGPT in 2022, Microsoft has heavily invested in data center infrastructure, yet recent financial results indicate a slowdown in A.I. spending. In early 2025, the company reduced its capital expenses to $21.4 billion, down $1 billion from the previous quarter, though it still anticipates over $80 billion in expenses for the fiscal year ending in June. Microsoft's overall financial performance remains strong, with sales rising 13% to over $70 billion and profits up 18% to $25.8 billion, exceeding Wall Street's forecasts.
Microsoft has recently slowed its capital spending on artificial intelligence, indicating a shift in the tech industry's spending habits after a significant investment phase.
Despite a slight pullback in A.I. spending, Microsoft reported strong overall financials with sales surpassing $70 billion and profits rising to $25.8 billion.
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