AI Push Gives Microsoft Its Worst Quarter in 8 Years
Microsoft is closing the first quarter of 2026 with its worst stock performance since the 2008 financial crisis. Investors are worried about two things at once: rising capital expenditure on AI infrastructure, and the risk that customers will go straight to OpenAI and Anthropic, bypassing Microsoft's familiar software. Against that backdrop, Azure is slowing down, and Copilot has not yet delivered the expected impact.
AI-processed from Bloomberg Tech; edited by Hamidun News
Microsoft's push into artificial intelligence has delivered its worst quarter on the stock market since 2008: as of March 27, 2026, the company's shares were down roughly a quarter since the start of the year.
Why isn't Microsoft's AI spending paying off?
The company has spent many billions on AI infrastructure, but investors fear that generative AI will start eating into the value of Microsoft's own software, rather than the other way around.
Why has the AI push cost Microsoft on the stock market?
The company is sharply increasing spending on AI infrastructure (data centers, servers, capacity), while investors fear that generative AI will start eating into the value of Microsoft itself.
When will Microsoft's AI spending start to pay off?
The market is asking this question loudly. There is no defined payback period for Microsoft's multibillion-dollar AI bet, which puts pressure on the company's shares.
- Nov 2, 2026Anthropic needs to grow revenue 32% a year to cover $850 billion in contracts
- Nov 2, 2026Microsoft releases 4B model Mage-VL-Cowork, which solves 66.0% of OSWorld-Verified tasks
- Nov 1, 2026Google's StreamVibe video agent beats other models by 10.7% on response timing and quality
- Oct 30, 2026Mistral opens Large 4 weights: strong at code, but Chinese models score 32 to its 26
Key Questions Answered
Why isn't Microsoft's AI spending paying off?
The company has spent many billions on AI infrastructure, but investors fear that generative AI will start eating into the value of Microsoft's own software, rather than the other way around.
Why has the AI push cost Microsoft on the stock market?
The company is sharply increasing spending on AI infrastructure (data centers, servers, capacity), while investors fear that generative AI will start eating into the value of Microsoft itself.
When will Microsoft's AI spending start to pay off?
The market is asking this question loudly. There is no defined payback period for Microsoft's multibillion-dollar AI bet, which puts pressure on the company's shares.
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