Microsoft Raises 2027 AI Capex to $180B as Azure Growth Hits 38%
Microsoft projects 38% Azure revenue growth and raised its 2027 capex forecast to $180 billion to support AI demand, citing non-OpenAI backlog growth exceeding 20%. Its deep partnership with OpenAI faces legal scrutiny after Elon Musk filed a $134 billion lawsuit over OpenAI’s shift to profit.
1. Azure Growth and Capex Increase
Microsoft projects 38% Azure revenue growth and raised its 2027 capital expenditure forecast to $180 billion to meet surging AI demand, reflecting confidence in its cloud infrastructure scalability.
2. Backlog and Spending Drivers
Non-OpenAI revenue backlog expansion above 20% underpins the elevated capex, with AI-related RPO bookings signaling sustained enterprise demand and justifying continued investment in data centers and hardware.
3. Legal Scrutiny over OpenAI Partnership
Elon Musk’s $134 billion lawsuit challenges OpenAI’s transition to a for-profit model and its deep integration with Microsoft, potentially exposing governance and reputational risks for the tech giant.