Microsoft plans to increase its capital expenditure (capex) on AI infrastructure and hardware like chips for its Azure cloud computing services. The company aims to meet the growing demand for AI workloads and stay competitive in the cloud market. Microsoft’s cloud business, including Azure, has been a significant growth driver, and the company sees AI as a key area for future expansion. By investing in AI infrastructure and hardware, Microsoft can offer more powerful and efficient AI services to its customers. The move aligns with the company’s focus on AI and its efforts to integrate AI capabilities across its products and services. Microsoft’s increased spending on AI infrastructure and hardware demonstrates its commitment to staying at the forefront of AI innovation and meeting the evolving needs of its customers in the cloud computing and AI space.