Microsoft explains why it doesn’t think its AI spending is risky

Another topic of conversation on the earnings call: If Microsoft is spending on artificial-intelligence hardware that has a useful life of perhaps six years, will the demand still be there more than half a decade down the road?

“A lot of the GPUs that we’re buying are already contracted for most of their useful life,” CFO Amy Hood said in response to a Bernstein analyst’s question. For that reason, “much of that risk” doesn’t exist because the chips are “already sold for the entirety of their useful life,” she added.