Michelle ThompsonMicrosoft plans to invest around $80 billion in fiscal 2025 to develop data centers for training AI models and deploying AI and cloud-based applications, the company announced in a blog post on Friday.
AI investment has surged since OpenAI launched ChatGPT in 2022, with companies across industries seeking to integrate AI into their products and services. The need for massive computing power has driven demand for specialized data centers that connect thousands of chips in clusters.
Microsoft has already been investing billions to improve its AI infrastructure and expand its data center network.
Analysts predict Microsoft’s fiscal 2025 capital expenditure, including capital leases, will reach $84.24 billion, according to Visible Alpha. In the first quarter of fiscal 2025, the company’s capital expenditure rose 5.3% to $20 billion.
As OpenAI’s primary backer, Microsoft is considered a major player in the AI race, bolstered by its exclusive partnership with the AI chatbot creator.
Brad Smith, Vice Chair and President of Microsoft, stated that more than half of the $80 billion investment would be directed toward the United States. He emphasized, “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.”
Emily Martinez
