Microsoft to Invest $80 Billion in AI-Enabled Data Centers in Fiscal 2025

Microsoft plans to invest $80 billion in fiscal 2025 to develop data centers focused on training artificial intelligence (AI) models and deploying AI and cloud-based applications, according to a company blog post. This follows a surge in AI investments, driven by the popularity of AI technologies like OpenAI’s ChatGPT, which require vast computing power.

As AI technologies demand specialized infrastructure, Microsoft is significantly enhancing its data-center network and increasing its investment in AI-focused computing capabilities. The company’s fiscal 2025 capital expenditure, including leases, is projected to total $84.24 billion, with a 5.3% increase to $20 billion in the first quarter of fiscal 2025.

Microsoft’s ongoing investment is seen as crucial to its competitive positioning in the AI race, especially given its exclusive backing of OpenAI. More than half of the $80 billion investment will be allocated to the United States, underscoring the country’s leadership in the global AI landscape.

 

Chinese Hack of U.S. Telecoms Compromised More Firms, WSJ Reports

A Chinese cyberattack has compromised more U.S. telecom companies than previously reported, including Charter Communications (CHTR.O), Consolidated Communications (CCII.UL), and Windstream, according to a Wall Street Journal report. Hackers exploited unpatched devices from security vendor Fortinet and compromised routers from Cisco Systems (CSCO.O), infiltrating networks of major firms such as AT&T (T.N), Verizon (VZ.N), Lumen Technologies (LUMN.N), and T-Mobile (TMUS.O).

The attack, linked to the Chinese-backed Salt Typhoon cyberespionage operation, raised concerns about the scale of the breach and the vulnerability of critical infrastructure. U.S. national security adviser Jake Sullivan warned telecom and tech executives that Chinese hackers could potentially disrupt U.S. ports, power grids, and other infrastructure. The affected companies have since secured their networks and worked with law enforcement and government officials to mitigate further damage. However, the hack is a reminder of the growing risks of state-sponsored cyberattacks.

United Airlines to Launch Starlink In-Flight Internet by Spring

United Airlines (UAL.O) announced that it plans to begin testing Elon Musk’s Starlink satellite internet service in February, with plans to offer connectivity on commercial flights operated by Embraer (EMBR3.SA) E-175 aircraft starting this spring. The airline aims to equip its entire regional fleet with Starlink by the end of 2025 and have its first Starlink-enabled planes on major routes by the year’s close.

While Starlink will be available on all flights in the future, access will be free for MileagePlus members, marking a shift from the airline’s initial plan to offer free Wi-Fi to all passengers. United had signed a deal with SpaceX’s Starlink last year to provide in-flight internet services across its fleet, which includes over 1,000 aircraft. Starlink has also secured deals with other airlines like Hawaiian Airlines and regional carrier JSX as part of its strategy to expand beyond rural consumer markets.