{"id":1305669,"date":"2026-02-05T09:11:23","date_gmt":"2026-02-05T03:41:23","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1305669"},"modified":"2026-02-05T09:11:37","modified_gmt":"2026-02-05T03:41:37","slug":"microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/","title":{"rendered":"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending"},"content":{"rendered":"\n<p>Wall Street\u2019s multi-year confidence in artificial intelligence is undergoing a major stress test, as investors increasingly view OpenAI\u2014and the broader generative AI sector\u2014not as a guaranteed engine of exponential growth but as a potential source of systemic risk for the technology industry. A dramatic selloff in tech stocks on Thursday highlighted the market\u2019s growing frustration with the \u201cspend now, profit later\u201d strategy that has powered the AI boom for the past three years. Microsoft led this downturn, with its shares plunging 12 percent by midday, wiping out more than $440 billion in market value in one of its worst collapses since the pandemic era. The Nasdaq index was also down nearly 2 percent during the session.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg\" alt=\"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending\" class=\"wp-image-1305829\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1-300x169.jpg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1-768x432.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Skepticism Grows as Microsoft\u2019s OpenAI Commitments Fuel Market Turbulence<\/strong><\/p>\n\n\n\n<p>The shift in sentiment appears largely driven by concerns over soaring capital expenditures. Microsoft disclosed that its capex jumped 66 percent to $37.5 billion in the latest quarter, even as growth in its Azure cloud unit softened. More alarming for analysts was the revelation that roughly 45 percent of Microsoft\u2019s $625 billion in remaining performance obligations is directly tied to OpenAI. The scale of this exposure raised fresh questions about whether OpenAI can generate sufficient revenue to justify the massive infrastructure commitments being made on its behalf.<\/p>\n\n\n\n<p>Market commentators echoed these concerns. CNBC\u2019s Jim Cramer remarked that the sudden shift resembles a collapse of the software-driven AI narrative and an overwhelming dominance of hardware spending. Morning Brew cofounder Austin Rief described the data as \u201cominous,\u201d especially as Meta prepares to allocate most of its free cash flow toward capex. While Meta avoided the selloff due to strong ad-driven revenue growth, investors\u2019 willingness to support its spending highlighted a deeper skepticism toward OpenAI\u2019s ability to deliver returns without enormous outside capital.<\/p>\n\n\n\n<p><strong>Growing Concerns Over OpenAI\u2019s Funding Model Hit Oracle\u2019s Market Value<\/strong><strong><\/strong><\/p>\n\n\n\n<p>The anxiety extends beyond Microsoft. Oracle has seen its valuation cut in half since September, losing nearly $463 billion as doubts grow about whether OpenAI-related data center projects\u2014some now delayed until 2028\u2014will ultimately be funded. This delay worsens the mismatch between Oracle\u2019s heavy debt-backed investments and actual revenue arrival. Meanwhile, OpenAI has accumulated commitments of nearly $1.4 trillion for energy and compute needs, despite generating only about $20 billion in revenue in 2025. Reports that OpenAI is seeking another $60 billion from partners like Nvidia and Amazon further fuelled concerns that constant fundraising is no longer a sustainable business model.<\/p>\n\n\n\n<p><strong>Summary:<\/strong><\/p>\n\n\n\n<p>Wall Street\u2019s confidence in AI is weakening as huge capex, heavy OpenAI-linked obligations, and slowing returns trigger a major tech selloff. Microsoft and Oracle faced steep valuation losses, while doubts intensified over OpenAI\u2019s ability to justify massive infrastructure spending. Investors now question the sustainability of constant fundraising and delayed revenue models.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street\u2019s multi-year confidence in artificial intelligence is undergoing a major stress test, as investors increasingly view OpenAI\u2014and the broader generative AI sector\u2014not as a guaranteed engine of exponential growth but as a potential source of systemic risk for the technology industry. A dramatic selloff in tech stocks on Thursday highlighted the market\u2019s growing frustration [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":1305829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[271,109],"class_list":["post-1305669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-ai","tag-microsoft"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"Wall Street\u2019s multi-year confidence in artificial intelligence is undergoing a major stress test, as investors increasingly view OpenAI\u2014and the broader generative AI sector\u2014not as a guaranteed engine of exponential growth but as a potential source of systemic risk for the technology industry. A dramatic selloff in tech stocks on Thursday highlighted the market\u2019s growing frustration [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-05T03:41:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-05T03:41:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rohit Kulkarni\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rohit Kulkarni\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/\",\"url\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/\",\"name\":\"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups\",\"isPartOf\":{\"@id\":\"https:\/\/trak.in\/stories\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg\",\"datePublished\":\"2026-02-05T03:41:23+00:00\",\"dateModified\":\"2026-02-05T03:41:37+00:00\",\"author\":{\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/4486219a5d31e657b529e6e874cead8b\"},\"breadcrumb\":{\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage\",\"url\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg\",\"contentUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg\",\"width\":1024,\"height\":576},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/trak.in\/stories\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/trak.in\/stories\/#website\",\"url\":\"https:\/\/trak.in\/stories\/\",\"name\":\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\",\"description\":\"Trak.in is a popular Indian Business, Technology, Mobile &amp; Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups &amp; Social Media Space\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/trak.in\/stories\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/4486219a5d31e657b529e6e874cead8b\",\"name\":\"Rohit Kulkarni\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/52ba60e3a61a3517cad7b5dd6bce76c6e7a4d8b337f4240839e8737c4ab8b1bb?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/52ba60e3a61a3517cad7b5dd6bce76c6e7a4d8b337f4240839e8737c4ab8b1bb?s=96&d=mm&r=g\",\"caption\":\"Rohit Kulkarni\"},\"url\":\"https:\/\/trak.in\/stories\/author\/rohit-kulkarni\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/","og_locale":"en_US","og_type":"article","og_title":"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups","og_description":"Wall Street\u2019s multi-year confidence in artificial intelligence is undergoing a major stress test, as investors increasingly view OpenAI\u2014and the broader generative AI sector\u2014not as a guaranteed engine of exponential growth but as a potential source of systemic risk for the technology industry. A dramatic selloff in tech stocks on Thursday highlighted the market\u2019s growing frustration [&hellip;]","og_url":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/","og_site_name":"Trak.in - Indian Business of Tech, Mobile &amp; Startups","article_published_time":"2026-02-05T03:41:23+00:00","article_modified_time":"2026-02-05T03:41:37+00:00","og_image":[{"width":1024,"height":576,"url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg","type":"image\/jpeg"}],"author":"Rohit Kulkarni","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Rohit Kulkarni","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/","url":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/","name":"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending - Trak.in - Indian Business of Tech, Mobile &amp; Startups","isPartOf":{"@id":"https:\/\/trak.in\/stories\/#website"},"primaryImageOfPage":{"@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage"},"image":{"@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage"},"thumbnailUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg","datePublished":"2026-02-05T03:41:23+00:00","dateModified":"2026-02-05T03:41:37+00:00","author":{"@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/4486219a5d31e657b529e6e874cead8b"},"breadcrumb":{"@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#primaryimage","url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg","contentUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg","width":1024,"height":576},{"@type":"BreadcrumbList","@id":"https:\/\/trak.in\/stories\/microsoft-investors-lost-440-billion-last-week-due-to-increased-ai-spending\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/trak.in\/stories\/"},{"@type":"ListItem","position":2,"name":"Microsoft Investors Lost $440 Billion Last Week Due To Increased AI Spending"}]},{"@type":"WebSite","@id":"https:\/\/trak.in\/stories\/#website","url":"https:\/\/trak.in\/stories\/","name":"Trak.in - Indian Business of Tech, Mobile &amp; Startups","description":"Trak.in is a popular Indian Business, Technology, Mobile &amp; Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups &amp; Social Media Space","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/trak.in\/stories\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/4486219a5d31e657b529e6e874cead8b","name":"Rohit Kulkarni","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/52ba60e3a61a3517cad7b5dd6bce76c6e7a4d8b337f4240839e8737c4ab8b1bb?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/52ba60e3a61a3517cad7b5dd6bce76c6e7a4d8b337f4240839e8737c4ab8b1bb?s=96&d=mm&r=g","caption":"Rohit Kulkarni"},"url":"https:\/\/trak.in\/stories\/author\/rohit-kulkarni\/"}]}},"jetpack_featured_media_url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/02\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1305669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/comments?post=1305669"}],"version-history":[{"count":3,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1305669\/revisions"}],"predecessor-version":[{"id":1305830,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1305669\/revisions\/1305830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media\/1305829"}],"wp:attachment":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media?parent=1305669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/categories?post=1305669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/tags?post=1305669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}