Microsoft Cuts Carbon Removal Purchases by 80% Amid AI Push

Microsoft has drastically reduced its investments in carbon removals by 80% this year as it shifts focus to artificial intelligence. The company bought 8.55 million metric tons of carbon removal credits from mid-January to mid-July, which is a significant decrease compared to the same period last year.

The reduction marks Microsoft's first retreat since 2023 from the market of carbon removals, a sector it entered in 2020. The move comes as Microsoft ramps up spending on AI, signaling its growing commitment to this emerging technology.

Microsoft did not provide a reason for the decrease in carbon removal purchases, but experts say it may be due to the company's increasing focus on AI and other digital investments.