[News] Microsoft, Meta Ramp Up AI Spend, Lifting NVIDIA’s Taiwanese ODM Partners Foxonn, Quanta and Wiwynn

Although there were earlier concerns about whether major CSPs would scale back AI-related capital spending, Meta and Microsoft have both announced plans to increase their AI investments, according to Economic Daily News. This is expected to be a fresh boost for NVIDIA, with key Taiwanese AI server ODMs—such as Foxconn, Quanta, and Wiwynn—also set to benefit, the report adds.

As noted by the report, Foxconn primarily handles system assembly orders for NVIDIA’s NVL 72 servers, while Quanta is the main assembler for the NVL 36 model. Quanta is also a key server supplier for Meta, accounting for 50% of its orders, while more than half of Wiwynn’s revenue comes from Meta, making both companies significant beneficiaries.

Microsoft Confirms Ongoing AI Investment Amid Reports of Cancelled Datacenter Leases

Responding to reports of canceled data center leases, Microsoft CEO Satya Nadella reaffirms during the company’s earnings call that they remain committed to expansion, noting that Microsoft opened data centers in 10 countries across four continents this quarter.

Meanwhile, according to Reuters, Microsoft’s capital expenditures jump 53% to USD 21.4 billion in the third quarter (ending March), though only about half is spent on longer-lived assets. CFO Amy Hood says that in fiscal 2026, starting in July, capex will continue to grow but at a slower rate, with a greater focus on shorter-lived assets—reflecting a shift from long-term investments like data center buildings to assets such as chips.

Microsoft’s revenue rises 13% to USD 70.1 billion, with its Intelligent Cloud unit—including Azure—bringing in USD 26.8 billion, Reuters highlights.

Meta’s Soaring Capex Underscores AI Drive

Meta announces that it now expects its 2025 capital expenditures to range from USD 64 billion to USD 72 billion—a significant increase from the USD 60 billion to USD 65 billion projection it provided just three months earlier, according to Fortune. The company states that part of its increased capital expenditures is due to “an increase in the expected cost of infrastructure hardware,” referencing tariffs imposed by the Trump administration on key data center components, as noted by Fortune.

Read more

• [News] Cloud Giants Face Investment Skepticism—Amazon and Google Say AI Push Continues
• [News] Microsoft’s Rumored Data Center Lease Cuts Spark Concerns, Alarm Taiwan’s Server OEMs
• [Selected Topics] AI Chip Race Continues as CSPs Actively Involve in Development of AI ASICs

(Photo credit: Microsoft)