Microsoft intends to allocate a substantial $80 billion towards the development of AI-driven data centers in their fiscal year 2025.
Investment in Artificial Intelligence has skyrocketed following the launch of ModelGPT by OpenAI in 2022, as corporations from various industries aim to incorporate AI into their goods and services.
AI calls for substantial computational resources, triggering a surge in demand for sophisticated data centers capable of connecting multiple processors in groups.
Microsoft has been pouring billions into boosting its AI infrastructure and expanding its data-center network.
Analysts predict Microsoft's fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, as per Visible Alpha.
The organization's capital expenditure during the first quarter of fiscal 2025 increased by 5.3% to $20 billion.
As OpenAI's major financier, the tech titan is viewed as a top contender among tech giants in the AI competition thanks to its unique collaboration with the AI chatbot developer.
Over half of Microsoft's $80 billion investment will be in the United States, Vice Chair and President Brad Smith mentioned in a blog post.
“Today, the United States takes the lead in the global AI race due to the investment of private capital and inventive drive of American companies of all scales, ranging from vibrant start-ups to well-established corporations,” Smith stated.
Technology companies are intensifying their focus on business expansion in the realm of AI. Microsoft's significant investment in tech, such as enhancing AI infrastructure and expanding data centers, underscores this trend.
