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Explained in plain English

What is capital expenditure?

Capital expenditure, or 'CapEx', is money a company spends on assets that will help it grow and operate in the long term. This includes things like new buildings, machinery, or, in Microsoft's case, vast amounts on data centres and AI infrastructure. It's an investment in the future, rather than an immediate return to owners.

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Microsoft's AI spending is four times its shareholder payouts

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