18 August 2026

Guardian investigation reveals Microsoft has far fewer AI chips than capacity claims suggest

• Microsoft reported having 2.2 million AI chips installed globally by mid-2024, significantly lower than what experts expected given the company's public statements about datacentre capacity.
• The company claimed it added 5 gigawatts of datacentre capacity in two years, but academic analysis of Microsoft's own sustainability reports suggests actual AI capacity is roughly one-fifth of that figure.
• Several major Microsoft AI projects announced as operational appear incomplete or offline. The company's CEO acknowledged having chips in inventory that cannot be deployed due to insufficient electrical power infrastructure.
• Nvidia, the sole maker of these chips, keeps supply figures secret and does not disclose which companies receive how many chips, making independent verification of AI industry growth nearly impossible.

How it was covered

The NeuronPete Huang & Grant Harvey

Microsoft's stock dropped 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