AI EXPOSURE
Microsoft
Real AI revenue, diluted inside a very large business — and carrying hyperscaler-scale capex on the other side of the ledger.
AllFactsAI holds no position in Microsoft (MSFT), as at 12 September 2026.
11.2%
AI business annual run rate of $37bn, against $331.84bn of FY2026 revenue
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EVERY FACT WE HAVE ON Microsoft
- Microsoft's most recently reported quarterly cash spending on property and equipment reached $35.80 billionQ2 2026 · Source Microsoft, SEC EDGAR (XBRL filings)
- Stanford's AI Index found the United States trailing most of the world's advanced economies on population-level AI adoption. Citing Microsoft AI Economy Institute telemetry for the second half of 2025, the index ranked the US 24th out of the top 30 economies worldwide, with an AI usage rate of 28.3% of Americans, still in the bottom half of the global rankingH2 2025 · Source Stanford AI Index (Microsoft data)
- Microsoft told investors in April 2026 that its AI business had reached an annual run rate of $37 billionApril 2026 · Source Microsoft FY2026 Q3 earnings call
- Microsoft's cash capital expenditure rose by more than half between the third and fourth quarters of 2025, reaching $29.88 billion in a single quarterQ4 2025 · Source Microsoft 10-Q, via SEC XBRL
- Microsoft's cash spending on property and equipment reached, in the first quarter of 2026 alone, $30.88 billionQ1 2026 · Source Microsoft 10-Q, via SEC XBRL
- Epoch AI's Frontier Data Centers Hub tracks AI data-centre construction using satellite imagery and public filings. It estimates xAI's Colossus 2, the most powerful AI data centre operating in 2026 at 1.4 million H100-equivalents, will be dwarfed once Meta's Hyperion and Microsoft's Fairwater are complete, when the two will together reach 5 million H100-equivalent GPUs combined, once Meta's Hyperion and Microsoft's Fairwater data centres are completeNov 2025 · Source Epoch AI
- Combined capital expenditure by Oracle, Microsoft, Amazon, Meta and Alphabet is projected to exceed $800 billion in 2026, surpassing the five companies' combined operating cash flow for the first time, a new NBER working paper on financing the AI buildout finds $800B 2026 hyperscaler capexOct 2026 · Source NBER (Van Nieuwerburgh)
- IREN, the former bitcoin miner that converted its powered sites into GPU data centres for AI cloud customers including Microsoft, spent on property, plant, equipment and computer hardware combined in the fiscal year ended 30 June 2026 $1.98 billion, up 46% from $1.36 billion a year earlierFY2026 · Source IREN
- Stanford's 2026 AI Index cites a study that pitted Microsoft's AI Diagnostic Orchestrator, paired with OpenAI's o3 reasoning model, against 21 practicing physicians with five to twenty years of experience working unaided on diagnostically challenging New England Journal of Medicine cases. The AI system's accuracy reached 85.5%, versus about 20% for the unaided physicians2026 · Source Stanford HAI AI Index
- TrendForce expects CoWoS-L to remain the mainstream advanced-packaging platform for AI chips through 2028, with Google adopting EMIB-T packaging and both AWS and Microsoft adopting CoWoS-L for their own AI chips in 2027, and Nvidia's high-end GPU shipments growing about 30% year-over-year in 2026September 2026 · Source TrendForce
- TrendForce's tally of the industry's biggest cloud spenders keeps climbing. Combining Google, Amazon, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba and Baidu, it now forecasts their combined 2026 capital expenditure will exceed $886.7 billion, with the five North American hyperscalers accounting for nearly 90% of it2026E · Source TrendForce
- While Amazon, Microsoft, Meta, Alphabet and Oracle have all sharply increased AI capital spending, Apple's cash paid for property, plant and equipment in the nine months to 27 June 2026 actually fell, to Apple's nine-month capex of $6.8 billion, down 28% from $9.47 billion a year earlierNine months ended 27 Jun 2026 · Source Apple Inc. (SEC 10-Q)
Microsoft on the channel
Microsoft (MSFT): how to read a $37bn number nobody signed
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Microsoft spent $35.8bn on building in one quarter. Almost a year of its AI number
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Microsoft reports three businesses. None of them is called AI
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Microsoft's $37bn AI number is not in its accounts
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