Big Tech Capex Hits $725B; Microsoft Attributes $25B to Chip & Memory Costs

Combined capex across major cloud and tech firms reached a record $725 billion, with Microsoft explicitly attributing $25 billion of its record AI infrastructure spending to rising component and memory costs, signaling margin pressure from supply constraints.

Skyrocketing semiconductor and DRAM prices are forcing hyperscalers to adjust build-out timelines and supplier negotiations, reshaping the economics of AI training and inference infrastructure for the next 18–24 months.