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- Microsoft plans to boost spending on AI and cloud services as demand rises.
- The company made $26.7 billion in revenue this quarter from cloud products, including Azure.
- Microsoft's spending commitment follows leaked plans to acquire 1.8 million AI chips in 2024.
Microsoft won't slow down its artificial intelligence spending spree anytime soon.
In its third-quarter earnings call on Thursday, the tech giant said it will continue to invest in AI and cloud services because of growing demand and a rise in average spending on its cloud platform, Azure.
Capital expenditure — what a company spends on buying or maintaining assets — will increase "materially," Amy Hood, Microsoft's chief financial officer, said on the call.
"Currently, near-term AI demand is a bit higher than our available capacity," Hood said.
The company spent nearly $11 billion on property and equipment in the third quarter — 66% more than it spent in the same period a year ago.
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