Microsoft Corp. is rolling out its second-generation artificial intelligence chip, the centerpiece of the company’s push to power its services more efficiently and provide an alternative to Nvidia Corp.

Microsoft's capital expenditures surged 66% in the December quarter as the company rushed to spend on artificial-intelligence infrastructure. The company reported $37.5 billion in capex, inclusive of assets acquired through finance leases.

Microsoft's capital expenditures, viewed as a barometer for artificial-intelligence spending, may have topped a milestone figure in the latest quarter. The company hasn't spent upwards of $20 billion on capital expenditures in any quarter going back at least to the end of 2021,