(Reuters) – Microsoft (MSFT.O), opens new tab, plans to invest around $80 billion in fiscal 2025 to create data centers for training artificial intelligence (AI) models and deploying AI and cloud-based services, according to a blog post published on Friday.
Investment in AI has increased since OpenAI launched ChatGPT in 2022, as businesses from many industries strive to incorporate artificial intelligence into their goods and services.
AI necessitates massive processing capacity, increasing demand for specialized data centers that allow tech companies to connect thousands of processors in clusters.
Microsoft has invested billions of dollars to improve its AI technology and expand its data center network.
According to Visible Alpha, Microsoft’s capital expenditures, including capital leases, are expected to total $84.24 billion in fiscal 2025.
The company’s capital expenditure in the first quarter of fiscal 2025 increased by 5.3% to $20 billion.
Because of its unique cooperation with OpenAI, the IT behemoth is regarded as a top contender among Big IT firms in the AI race.
More than half of Microsoft’s $80 billion investment will be made in the United States, Vice Chair and President Brad Smith stated in a 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,” Mr. Smith added.
