(Reuters) – Microsoft plans to invest about $80 billion in fiscal 2025 to develop data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.
Investments in artificial intelligence have increased since OpenAI launched ChatGPT in 2022, as companies from various sectors seek to integrate artificial intelligence into their products and services.
AI requires massive computing power, increasing demand for specialized data centers that allow tech companies to connect thousands of chips together in clusters.
Microsoft (NASDAQ: ) is investing billions to improve its AI infrastructure and expand its data center network.
Analysts expect Microsoft’s fiscal 2025 capital expenditures, including capital leases, to total $84.24 billion, according to Visible Alpha.
The company’s capital expenditures in the first quarter of fiscal 2025 rose 5.3% to $20 billion.
As the primary sponsor of OpenAI, the tech giant is considered a leading contender among major tech companies in the AI race due to its exclusive partnership with the AI chatbot maker.
More than half of Microsoft’s $80 billion investment will be in the United States, vice president and president Brad Smith said in a blog post.
“Today, the United States leads the global AI race thanks to private capital investment and innovation by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith said.
