According to a Friday blog post, Microsoft intends to invest $80 billion in fiscal 2025 to build data centers capable of managing workloads related to artificial intelligence.
According to Microsoft Vice Chair and President Brad Smith, more than half of the anticipated investment in AI infrastructure will occur in the United States. June marks the end of Microsoft’s fiscal year for 2025.
Thanks to private capital investments and inventions by American businesses of all sizes, from innovative start-ups to well-established corporations, the United States is currently leading the world in artificial intelligence, Smith added. Through our collaboration with OpenAI, emerging companies like Anthropic and xAI, and our own AI-enabled software platforms and applications, we at Microsoft have personally witnessed this.
In order to train and execute AI models, a number of leading technology corporations are rushing to spend billions on Nvidiagraphics processing units. The rush to develop generative AI capabilities was sparked by the rapid adoption of OpenAI’s ChatGPT helper, which was introduced in late 2022. Having investedmore than $13 billionin OpenAI, Microsoft provides cloud infrastructure to the startup and has incorporated its models into Windows, Teams and other products.
In the first quarter of fiscal 2025, Microsoft reported spending $14.9 billion on property and equipment, and $20 billion on capital expenditures and assets bought under finance leases worldwide. In October, Microsoft Chief Financial Officer Amy Hood announced that capital expenditures would rise sequentially in the fiscal second quarter.
AI services accounted for 12 percentage points of the company’s 33% annual growth in revenue from Azure and other cloud services.
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Smith urged the incoming government of President-elect Donald Trump to uphold the nation’s leadership in artificial intelligence by promoting American AI technologies overseas and educating students.
China is promising to construct local AI data centers and is beginning to provide developing nations with subsidized access to limited chips, Smith writes. The Chinese are astute enough to understand that a nation is likely to remain dependent on China’s AI platform in the future if it standardizes on it.
The greatest course of action for the United States, he continued, is to make sure we win the race ahead rather than whine about the competition. To do this, we must act swiftly and efficiently to position American AI as a better option.
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