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.
