Microsoft and Google hold back on raising AI capex forecasts

Microsoft and Alphabet reported capital expenditures below analyst estimates: Microsoft cut its full-year forecast to $170 billion from $175 billion, while Alphabet kept guidance at $195–205 billion. Microsoft cited delays from third-party GPU providers pushing some capacity to the first half of 2027, and Alphabet said outside computing power came online only at the very end of Q3.

• Microsoft lowered its full-year capex forecast to $170 billion from $175 billion
• Alphabet kept its capex guidance at $195–205 billion
• Third-party GPU delays pushed some capacity to the first half of 2027
• Alphabet reported negative free cash flow of more than $9 billion