Microsoft lays out an aggressive spending plan to serve AI demand
Microsoft plans to increase its spending on AI services, including the establishment of new data centers, after beating Wall Street's expectations for Q4 revenue and profit. The company aims to meet the growing demand for its AI offerings and is strategically integrating AI into its products.
In a bid to meet the soaring demand for its new artificial intelligence services, Microsoft revealed an ambitious spending plan after outperforming Wall Street's expectations for fourth-quarter revenue and profit. The company's expenses escalated due to the establishment of new data centers to bolster its AI capabilities. Chief Financial Officer Amy Hood indicated during a conference that capital expenditures would keep rising every quarter until fiscal year 2024. Shares fell about 4% in after-hours trade.