In a blog post on Friday, Microsoft stated that it plans to invest approximately $80 billion in fiscal 2025 in building data centers to train AI models and deploy AI and cloud-based applications.
Since OpenAI launched ChatGPT in 2022, investment in AI has increased as businesses from a variety of industries look to incorporate AI into their goods and services.
Due to AI’s high processing demands, there is a growing need for specialized data centers that allow IT companies to connect thousands of processors in clusters.
Microsoft has been spending billions to expand its network of data centers and improve its AI infrastructure.
Laptops 1000According to Visible Alpha, analysts project that Microsoft will spend $84.24 billion on capital expenditures, including leases, in fiscal 2025.
The company’s capital expenditures increased by 5.3% to $20 billion in the first quarter of fiscal 2025.
As the main supporter of OpenAI, the tech behemoth is seen as a front-runner among Big Tech firms in the AI race because of its exclusive collaboration with the AI chatbot developer.
President and Vice Chair Brad Smith stated in the blog post that the United States will get over half of Microsoft’s $80 billion investment.
“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,” added Smith.
