Microsoft To Boost AI Growth with $80 Billion Investment

Microsoft has announced plans to invest $80 billion in the 2025 fiscal year to expand its data centre infrastructure. The investment will focus on supporting the training of artificial intelligence (AI) models and the deployment of AI and cloud-based applications. The company disclosed this initiative in a blog post on Friday, emphasising its commitment to advancing AI and cloud technology.

Since OpenAI launched ChatGPT in 2022, investment in AI has surged as businesses across sectors strive to integrate artificial intelligence into their products and services.

AI requires enormous computing power, pushing demand for specialised data centres that enable tech companies to link thousands of chips together in clusters.

Before now, Microsoft has invested billions of dollars to enhance its AI infrastructure, broadening its data centre network.

Also Read: Data Centres: Microsoft to invest $1bn in Malaysia

Analysts project Microsoft’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, according to Visible Alpha. The company’s capital expenditure in the first quarter of the fiscal year rose by 5.3% to $20 billion.

As the primary backer of OpenAI, the tech giant is considered a leading player among Big Tech companies in the AI race, owing to its exclusive partnership with the AI chatbot developer.

More than half of Microsoft’s $80 billion investment will be allocated to the United States, Vice Chair and President Brad Smith noted in the blog post.

“Today, the United States leads the global AI race due to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith remarked.

REUTERS/Chidimma Gold