Burry Questions Microsoft’s AI Spending Race

This article first appeared on GuruFocus.

Microsoft Corp. (MSFT, Financials), the software and cloud computing business, is confronting a familiar conundrum with a sharper edge: How much AI infrastructure expenditure is too much?”Microsoft may be using its huge spending plans and financial metrics as a lever, and Wall Street is not looking closely enough at the numbers,” investor Michael Burry (Trades, Portfolio) says. He’s worried about the tech industry more generally.Microsoft, Amazon, Alphabet and Meta are aggressively investing in data centers because they expect AI to reinforce their market power, Burry believes. He cited OpenAI, Anthropic and Oracle as firms making significant investments to try to join that club as well.The debate matters because AI infrastructure is now one of the biggest capital commitments confronting Big Tech. Investors have largely bought into such outlays on the assumption that demand for computer power will continue to increase.Burry…