# Microsoft and Google hold back capex forecasts as AI buildout hits delays

> Original title: AI buildout hits snag as Google and Microsoft put off raising capex forecasts

- Source: CNBC · Technology
- Published: 2026-10-29T11:43:26.000Z
- Bad Influence: https://badinfluence.news/items/pxczp0kk9v3csilxk4aeau0n5
- Original: https://www.cnbc.com/2026/10/29/microsoft-google-ai-capex-estimates.html

## Summary

Microsoft cut its 2026 capex forecast to $170 billion from $175 billion, and Alphabet held guidance at $195 billion to $205 billion, both below analyst estimates. Microsoft said third-party GPU providers face delays pushing some capacity to the first half of 2027, while Alphabet's free cash flow was negative by more than $9 billion. Neocloud providers face rising borrowing costs and lender pullback, though hyperscaler capex is still expected to top $1 trillion next year.

## Why it matters

The report ties Microsoft and Alphabet's lower capex figures to delayed neocloud capacity and financing strains, showing how supplier constraints affect the broader AI infrastructure buildout.