SEATTLE, (TDI): Microsoft has announced plans to invest approximately $80 billion in fiscal year 2025 to expand its data centre network, aiming to enhance artificial intelligence (AI) capabilities and cloud-based applications, the tech giant disclosed in a blog post on Friday.
The announcement follows a surge in AI-related spending across industries, spurred by the 2022 launch of OpenAI’s ChatGPT. Businesses worldwide are increasingly incorporating AI into their products and services, driving demand for advanced computing infrastructure.
AI Infrastructure Expansion
AI development requires vast computing power, necessitating specialised data centres capable of connecting thousands of chips in clusters to handle intensive workloads. Microsoft has already allocated billions toward strengthening its AI infrastructure and expanding its global data centre footprint.
In the first quarter of fiscal 2025, Microsoft’s capital expenditure rose by 5.3% year-over-year to $20 billion, underscoring its commitment to advancing its AI and cloud technologies.
US Leads AI Race
More than half of the $80 billion investment will be made within the United States, according to Brad Smith, Microsoft’s Vice Chair and President. Smith credited private capital investment and innovation from both start-ups and established enterprises for maintaining the U.S.’s leadership in the global AI race.
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“Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes,” Smith stated in the blog post.
Strategic Positioning in AI
As the primary backer of OpenAI, Microsoft is positioned as a key player in the AI sector. Its exclusive partnership with the maker of ChatGPT has further solidified its leadership among Big Tech companies.
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According to CNBC, Microsoft’s investment will be focused on building data centres capable of supporting AI workloads, cementing its role in shaping the future of artificial intelligence.
