Microsoft Cuts Capex to $170 Billion as Alphabet Holds $195-$205 Billion on AI Delays
Updated
Updated · CNBC · Oct 29
Microsoft Cuts Capex to $170 Billion as Alphabet Holds $195-$205 Billion on AI Delays
3 articles · Updated · CNBC · Oct 29
Summary
$170 billion and $195-$205 billion became the new capex markers from Microsoft and Alphabet, both below analyst expectations as AI infrastructure rollouts hit timing snags.
Third-party GPU delays pushed some Microsoft capacity into the first half of 2027, while Alphabet said outside computing power came online only at the end of Q3.
Alphabet shares fell about 10% in extended trading after earnings, revenue and free cash flow missed, while Microsoft was buoyed by a beat driven by 48% Azure growth.
CoreWeave, Nebius, IREN and Oracle also dropped, reflecting investor concern that neocloud partners facing tighter financing could slow the broader AI build-out.
Amazon's results due Thursday are the next test for hyperscaler spending, even as Microsoft said capex should accelerate in early 2027 and sector outlays are still expected to top $1 trillion next year.