Microsoft has “tapped on the brakes” of its spending on artificial intelligence, reducing capital expenses by more than $1 billion in the first three months of 2025. But after 10 straight quarters of increased AI outlay, momentum continues to propel the sector forward with new data center commitments in 16 countries and the expansion of the Phi small language family with the debut of Phi-4 (that supports text, visual and voice inputs). The moves come on the heels of $70 billion in sales for the first three months of 2025, when profits were up 18 percent to $25.8 billion. Continue reading Microsoft Reduces Spending on AI but Momentum Continues