Microsoft plans to invest approximately $80 billion in fiscal 2025 to expand its data centers for training artificial intelligence (AI) models and deploying AI and cloud-based applications, the company announced in a blog post on Friday.
The surge in AI investments follows OpenAI’s launch of ChatGPT in 2022, which spurred demand for integrating AI into products and services across industries.
The development of AI models requires substantial computing power, driving the need for specialized data centers capable of linking thousands of chips in clusters. Microsoft has committed billions to expanding its AI infrastructure and strengthening its data-center network.
Vice Chair and President Brad Smith stated in the blog post that over half of the $80 billion investment will be allocated to the United States. “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.
Analysts forecast Microsoft’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, according to Visible Alpha. In the first quarter of fiscal 2025, the company’s capital expenditure increased by 5.3% to $20 billion.
As OpenAI’s primary backer and exclusive partner, Microsoft is regarded as a frontrunner among Big Tech firms in the competitive AI sector. The partnership strengthens the company’s position as it continues to drive innovation in artificial intelligence and cloud services.
