Microsoft Corporation (MSFT)[Tv]

Key Developments

• Microsoft secures a 20-year, 2.67-gigawatt behind-the-meter power deal with Chevron to fuel its Project Kilby data center in Texas, marking a transformative step toward energy sovereignty and long-term AI infrastructure control.
• A class-action lawsuit is filed alleging Microsoft misled investors about Copilot adoption, revealing only 15 million seats were sold and citing poor performance and stalled Azure growth due to AI-related capacity constraints—a direct challenge to the company’s core AI narrative.
• Microsoft’s $190 billion AI infrastructure spending plan through 2026 is confirmed, including a record $30.88 billion in quarterly capital expenditures—up 84% YoY—signaling a massive reinvestment push that is consuming nearly all operating cash flow.
• The lifting of export controls on Anthropic’s advanced AI models enables broader global deployment through Azure, reinforcing Microsoft’s central role in the international AI infrastructure ecosystem and giving it a strategic edge in geopolitical AI supply chains.
• Microsoft ends a multi-billion-dollar cloud infrastructure deal with Oracle due to the latter’s lack of FedRAMP certification, exposing structural vulnerabilities in accessing mission-critical government and regulated workloads despite Microsoft’s dominance elsewhere.