Microsoft delivered another blockbuster financial quarter, but investors remain unconvinced about the return on investment (ROI) on Microsoft's escalating AI spending. But the bulk of it was Microsoft executives, primarily CFO Amy Hood, the person who really runs this company, trying unsuccessfully to calm investor fears that Microsoft's AI spending is running off the rails. 💵 Microsoft's massive AI spendIn its quarterly results, Microsoft noted that its capital expenditures in the quarter—which translates directly to the cost of its AI infrastructure build-out—were $37.5 billion. Microsoft actually spent $84.6 billion on AI in fiscal 2025, and it's now spent $72.4 billion on AI in the first two quarters of fiscal 2026 alone. If that spending just stays flat, Microsoft will spend $145 billion on AI in 2026, almost double the spend in 2025.