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Is Microsoft Overspending on Artificial Intelligence? | MSFT Stock Deep Dive Part 5

Microsoft's capital expenditures on data centers, particularly for AI, are being funded by strong cash flow from operations. While free cash flow figures are not explicitly compared year-over-year, the company's bookings and remaining performance obligations show significant growth, largely driven by AI-related contracts, despite some investor skepticism about the long-term viability of these deals.

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Microsoft's AI investments are supported by strong cash flow, but investors are monitoring the long-term impact of large contracts.

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