New Delhi, Oct. 29 -- Microsoft has lowered its 2026 capital expenditure forecast by $5 billion despite strong growth in its artificial intelligence (AI) cloud business, raising questions about whether the move reflects a strategic shift or delays in infrastructure expansion. The company now expects capital expenditure of $170 billion, down from its earlier forecast of $175 billion, as some computing capacity from third-party providers is expected to arrive later than planned.

The revision comes as major technology companies continue to invest heavily in AI infrastructure, even as concerns grow over the costs and practical challenges of building data centres.

Microsoft Chief Financial Officer Amy Hood announced the revised forecast duri...