Microsoft said in a blog post Friday that it plans to spend $80 billion this year to develop data centers to train artificial intelligence (AI) models and deploy AI and cloud applications.
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Processing AI workloads AI requires enormous computing power, which increases demand for specialized data centers with the ability to combine thousands of chips into clusters, writes Reuters.
Companies across industries are looking to integrate AI into their products and services to improve their quality and consumer acceptance. Therefore, investment in AI has increased significantly since OpenAI launched its AI-powered chatbot ChatGPT in 2022.
Microsoft, as OpenAI’s largest investor, is investing heavily in improving its AI infrastructure and expanding its data center network. According to Visible Alpha, according to analysts’ forecasts, Microsoft’s capital expenditures, including leasing, will be $84.24 billion in fiscal 2025. In the first quarter of fiscal 2025, the company’s capital expenditures increased year-on-year by 5.3% to $20 billion.
According to Microsoft Vice Chairman and President Brad Smith, more than half of the investment will be directed to the infrastructure of the United States. “Today, the United States is leading the global AI race thanks to private capital investment and innovation from American companies of all sizes, from dynamic startups to established enterprises,” Smith said.