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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Is Microsoft Overspending on Artificial Intelligence? | MSFT Stock Deep Dive Part 5
May 8, 2026
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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