18 August 2026

Guardian investigation finds Microsoft has far fewer AI chips installed than expected

• Microsoft reported installing 2.2m AI chips by mid-2024, but experts analyzing the company's power usage estimates suggest the actual number may be significantly lower than capacity claims would indicate.
• The discrepancy matters because AI companies need massive quantities of expensive chips made by Nvidia to train and run AI models, and Microsoft has invested $280bn in datacentre expansion over two years.
• Microsoft's own CEO suggested the company has chips sitting unused in warehouses due to lack of completed datacentres and available electrical power to plug them into, rather than chip shortages.
• Without public disclosure from Nvidia on chip sales or from tech companies on chip holdings, it remains unclear whether the AI industry is actually expanding as rapidly as announced or facing supply constraints.

How it was covered

The NeuronPete Huang & Grant Harvey

Microsoft's stock fell after a Guardian investigation found the company may have far fewer AI chips installed than its data center capacity claims would require.

Reported by The Guardian