Microsoft will allocate $80 billion towards AI-driven data centers in the fiscal year 2025.
According to a blog post released on January 3, Microsoft plans to invest around $80 billion in fiscal 2025 to build data centers for training artificial intelligence (AI) models and supporting AI and cloud applications. Since the launch of ChatGPT by OpenAI in 2022, investment in AI has increased significantly as businesses from various industries aim to incorporate AI into their offerings.
AI needs a lot of computing power, increasing the need for special data centers that help tech companies connect many chips in groups. Microsoft is spending billions to improve its AI systems and expand its data center network. Analysts predict that Microsoft’s capital spending for fiscal 2025, including leases, will reach $84.24 billion, as reported by Visible Alpha. The first quarter of fiscal 2025, the company’s capital spending grew by 5.3% to $20 billion.
Microsoft is seen as a top player in the AI competition among significant tech firms because it is OpenAI’s leading supporter and uniquely partners with the AI chatbot creator. Vice Chair and President Brad Smith say over half of Microsoft’s $80 billion investment will be directed towards projects in the United States.
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