Some GPU compute contracts delayed, Microsoft cuts 2026 capex outlook to $170 billion
Microsoft CFO Amy Hood said on the earnings call that the company’s 2026 capex is expected to be $170 billion, down $5 billion from the previous $175 billion forecast, because some third-party GPU compute contracts have been delayed until the second half of fiscal 2027. Microsoft did not raise its capex outlook last quarter, in contrast to other cloud giants that keep increasing AI spending. The rare cut matters because it may point to a bottleneck in AI compute supply, while also easing market worries about unchecked cloud spending.
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