ISLAMABAD: Microsoft is planning to invest about $80 billion in fiscal year 2025 on developing data centres to train artificial intelligence (AI) models and deploy AI and cloud-based applications.
According to Reuters, the company announced its plans in a blog post on Friday.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services.
AI infrastructure
AI requires enormous computing power, pushing demand for specialised data centres that enable tech companies to link thousands of chips together in clusters.
Microsoft has been investing billions to enhance its AI infrastructure and broaden its data-centre network.
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The company’s capital expenditure in the first quarter of fiscal 2025 rose 5.3 per cent to $20 billion.
As OpenAI’s primary backer, the tech giant is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot maker.
AI race
More than half of Microsoft’s $80 billion investment will be in the United States, Vice Chair and President Brad Smith said in the 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,” Smith said.
According to CBNC, Microsoft will spend huge sums of money on the construction of data centres that can handle artificial intelligence workloads.
Today, the United States leads the global AI race thanks to the investment of private capital.” – Microsoft Vice Chair and President Brad Smith
Over half of Microsoft’s $80 billion in spending will take place in the US, Microsoft Vice Chair and President Brad Smith wrote.
