Microsoft intends to allocate approximately $80 billion in fiscal 2025 for the creation of data centers aimed at training artificial intelligence models and implementing AI and cloud-based applications, the company announced in a blog post on Friday.
Investment in AI has skyrocketed since OpenAI introduced ChatGPT in 2022, with businesses in various industries aiming to incorporate artificial intelligence into their offerings.
AI demands significant computing power, driving the need for specialized data centers that allow tech firms to connect thousands of chips in clusters.
Microsoft has been pouring billions into upgrading its AI infrastructure and expanding its data center network.
According to Visible Alpha, analysts predict that Microsoft’s capital expenditure for fiscal 2025, inclusive of capital leases, will reach $84.24 billion.
The firm’s capital spending in the first quarter of fiscal 2025 increased by 5.3% to reach $20 billion.
As the main supporter of OpenAI, the tech giant is viewed as a top competitor in the AI field among major tech firms because of its unique collaboration with the AI chatbot creator.
Vice Chair and President Brad Smith stated in a blog post that over half of Microsoft’s $80 billion investment will be in the U.S.
“Smith stated that currently, the United States is at the forefront of the global AI competition due to private capital investments and advancements made by American businesses ranging from vibrant start-ups to long-established firms.”
