Redmond, Washington — 31 July 2025 — Microsoft has announced plans to invest a record $30 billion in capital expenditures during the upcoming fiscal first quarter, marking its largest single-quarter investment to date. This strategic move underscores the company’s commitment to expanding its artificial intelligence (AI) and cloud computing capabilities to meet surging demand.
The announcement follows Microsoft’s strong fiscal fourth-quarter performance, where the company reported revenue of $76.4 billion, an 18% increase year-over-year, and net income of $27.2 billion, or $3.65 per share. Azure, Microsoft’s cloud platform, generated over $75 billion in annual revenue, reflecting a 34% growth from the previous year.
Chief Financial Officer Amy Hood highlighted that more than half of the planned $30 billion investment will be directed toward long-term infrastructure assets, such as data centers, expected to provide value over the next 15 years. The remaining funds will focus on procuring server components, including CPUs and GPUs, to support the growing demand for AI workloads.
This substantial investment positions Microsoft to compete with industry leaders like Amazon Web Services and Google in the rapidly evolving AI and cloud markets. The company’s strategic focus on AI-driven growth is evident in the widespread adoption of its Copilot applications, which have surpassed 100 million monthly active users.
Investors have responded positively to Microsoft’s aggressive expansion plans, with the company’s stock price rising over 9% in after-hours trading, bringing its market capitalization closer to the $4 trillion mark.
As Microsoft continues to scale its AI and cloud infrastructure, the company aims to solidify its position as a leader in the global AI race, meeting the increasing demands of enterprise customers and developers worldwide.
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