Microsoft, Alphabet throw more cash on the AI bonfire

Steven

Microsoft, Alphabet throw more cash on the AI bonfire

Summary

Microsoft has pledged more than $7.9 billion to build AI and cloud infrastructure in the UAE between 2026 and 2029 — including roughly $5.5bn in capital expenditure and $2.4bn in local operating costs. The firm also secured export licences to ship advanced GPUs to the UAE and signed a reported $9.7bn GPU services deal with AI cloud provider Iren, which plans liquid-cooled datacentres and phased GPU deployments in Texas.

Alphabet (Google’s parent) is raising cash for its AI push by selling bonds in Europe and the US — marketing euro-denominated tranches expected to raise at least €3bn and additional tranches in the US worth up to $15bn. Meta has also recently floated large bond offerings to fund AI infrastructure growth.

All this comes as analysts warn that enterprise AI spending may slow if vendor promises fail to deliver commensurate ROI, but big-tech continues to prioritise capacity and capability investments.

Key Points

  • Microsoft will invest over $7.9bn in UAE AI/cloud infrastructure from 2026–2029 (approx. $5.5bn capex, $2.4bn opex).
  • Microsoft received Commerce Department export licences to ship advanced GPUs to the UAE and announced a $9.7bn GPU services contract with Iren Limited.
  • Iren’s planned liquid-cooled datacentres in Texas will support phased GPU deployment and large-scale AI workloads (200 MW IT capacity cited).
  • Alphabet is selling euro- and dollar-denominated bonds to raise several billion euros/dollars to fund further AI infrastructure expansion.
  • Meta has also raised debt capital for AI build-out, illustrating an industry-wide pattern of financing infrastructure through bond markets.
  • Research firms warn of a potential reckoning for AI spending if the gap between vendor claims and enterprise ROI widens.

Author

Punchy: Big tech is still pouring cash into AI infrastructure — export licences, GPU deals, and multi‑billion bond sales are the new normal. If you want the headlines without sifting through filings and press releases, this is it.

Context and Relevance

This story matters because it shows where the next tranche of AI capacity will live and who controls it. Heavy capital expenditure and bond sales signal that hyperscalers are prioritising raw compute and regional capacity — decisions that affect cloud pricing, data sovereignty, partner opportunities, and the competitive landscape for AI services.

For IT leaders and investors, the announcements reveal where supply will expand (UAE, Texas) and how vendors are financing growth (capex, local operating spend, and debt). For policy watchers, GPU export licences and geopolitical ties are notable. Analysts warning about ROI gaps add a cautionary dimension: capacity growth doesn’t guarantee immediate enterprise value.

Why should I read this?

Because if you care who will own the muscle behind the next generation of AI — and how they’re paying for it — this cuts to the chase. It’s where the compute is going, who’s funding it, and why some experts think the spending spree might not pay off fast enough. Quick, useful and it saves you the legwork.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/11/03/tech_firms_continue_to_burn/