Microsoft plans $80 billion investment for AI-supported data centers
Investments in AI have been increasing rapidly since OpenAI launched ChatGPT in 2022, as many companies across industries are trying to integrate AI into their products and services. Because AI requires large amounts of computing power, it increases the demand for dedicated data centers.
Microsoft is investing billions of dollars to strengthen its AI infrastructure and expand its data center network. Analysts expect Microsoft’s fiscal 2025 capital expenditures to be $84.24 billion, including capital leases.
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Microsoft’s capital expenditures increased by 5.3% in the first quarter of fiscal 2025, reaching $20 billion. As the main backer of OpenAI, the tech giant is considered one of the leading candidates in the AI race.
“The United States is a leader in the global AI race thanks to private equity investment and innovation from American companies of all sizes,” Microsoft Executive Vice President and President Brad Smith said in the blog post. Smith stated that most of the investment will be made in the United States.
This major investment by Microsoft aims to strengthen the future of AI and cloud-based applications and maintain its leadership in the industry. This investment can usher technology into an innovative era and stimulate the country’s economic growth.