Microsoft plans to spend$ 80 billion in financial 2025 on the construction of data centers that can handle artificial intelligence workloads, the company said in a Friday.
Over half of the anticipated AI structure spending will take place in the U.S., Microsoft Vice Chair and President Brad Smith wrote. Microsoft’s 2025 financial time ends in June.
“ moment, the United States leads the global AI race thanks to the investment of private capital and inventions by American companies of all sizes, from dynamic launch- ups to well- established enterprises, ” Smith said. “ At Microsoft, we’ve seen this firsthand through our cooperation with OpenAI, from rising enterprises similar as Anthropic and xAI, and our own AI- enabled software platforms and operations. ”
Several top- league technology companies are rushing to spend billions on Nvidia raphics recycling units for training and running AI models. The fast spread of OpenAI’s ChatGPT adjunct, which launched in late 2022, demurred off the AI race for companies to deliver their own generative AI capabilities. Having invested further than$ 13 billion in OpenAI, Microsoft provides pall structure to the incipiency and has incorporated its models into Windows, brigades and other products.
Microsoft reported$ 20 billion in capital expenditures and means acquired under finance plats worldwide, with$ 14.9 billion spent on property and outfit, in the first quarter of financial 2025. Capital expenditures will increase successionally in the financial alternate quarter, Microsoft Chief Financial Officer Amy Hood said in October.
Judges surveyed by Visible nascence were looking for$ 63.2 billion in additions to property and outfit in financial 2025, inferring 42 time-over-year growth.
Microsoft’s profit from Azure and other pall services increased 33 in the financial first quarter, with 12 chance points stemming from AI services.
Smith called on President- elect Donald Trump’s incoming administration to cover the country’s leadership in AI through education and the creation of U.S. AI technologies abroad.
“ China is starting to offer developing countries subsidized access to scarce chips, and it’s promising to make original AI data centers, ” Smith wrote. “ The Chinese wisely fete that if a country standardizes on China’s AI platform, it probably will continue to calculate on that platform in the future. ”
He added, “ The stylish response for the United States is n’t to complain about the competition but to insure we win the race ahead. This will bear that we move snappily and effectively to promote American AI as a superior volition. ”