Microsoft To Invest $80 Billion In AI This Year Microsoft is set to invest $80 billion in artificial intelligence (AI) by 2025. In a blog post on Friday, the company said it will spend a large amount of money building cloud-based applications to train AI models.
Investment in AI has increased significantly since OpenAI launched ChatGPT in 2022. Demand for it is growing as companies across sectors look to integrate AI into their products and services.
AI requires massive computing power. That’s why technology companies are increasingly demanding specialized data centres that enable them to connect thousands of chips into clusters. Microsoft has been investing billions to improve its AI infrastructure and expand its data centre network.
Analysts estimate that Microsoft’s capital expenditures will total $84.24 billion in fiscal year 2025. The company’s capital expenditures will increase by 5.3 percent in the first quarter of fiscal year 2025, reaching $20 billion, according to CNN.
Microsoft is considered a leader in the AI race as a major investor in OpenAI. Microsoft has built these tools on its platform, especially because of its special partnerships with AI chatbot makers.
More than half of Microsoft’s $80 billion investment will be in the US, the company’s vice president Brad Smith said in a blog post. He said the US is a good place to invest in the latest technology, given the increasing private capital investment in the AI sector.
