WORLD
Microsoft to invest $80 billion in FY25 to develop AI data centres
- IBJ Bureau
- Jan 06, 2025
Microsoft is planning to invest about $80 billion in financial year 2025 (FY25 – July to June) in developing data centres to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company has said.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate AI 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.
Microsoft has been investing billions to enhance its AI infrastructure and broaden its data centre network.
Analysts expect Microsoft’s FY25 capital expenditure, including capital leases, to be $84.24 billion, according to Visible Alpha.
As OpenAI’s primary backer, the tech giant is considered a leading contender among Big 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 US, Microsoft Vice-Chair and President Brad Smith has said.
“Today, the United States leads the global AI race, thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Mr Smith has said.
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