Microsoft stated that the company is planning to invest about $80 billion in fiscal 2025 in developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications.
Since the launch of ChatGPT by OpenAI in 2022, investment in AI has surged, with companies from various sectors aiming to incorporate artificial intelligence into their products and services. AI demands massive computing power, driving the need for specialized data centers that allow tech companies to connect thousands of chips in clusters.
Microsoft has been investing billions to enhance its AI infrastructure and broaden its data center network.
Analysts expect Microsoft’s fiscal 2025 capital expenditure including capital leases to be $84.24 billion, according to Visible Alpha. The company’s capital expenditure in the first quarter of fiscal 2025 rose 5.3 percent to $20 billion.
As OpenAI’s primary backer, the tech giant is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot maker.
More than half of Microsoft’s $80 billion investment will be in the United States, Vice Chair and President Brad Smith said in the blog post.
“Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith said.
