Microsoft to Invest $80 Billion in AI Data Centers in Fiscal 2025
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An $80 billion investment in data centers is planned by Microsoft for fiscal 2025, Reuters reported, citing a blog post. This massive investment will support the development of AI, specifically for training AI models and deploying related cloud applications, demonstrating the escalating need for computational resources in the AI field.
The surge in AI investment follows the launch of OpenAI's ChatGPT in 2022, triggering widespread adoption of AI across industries. AI's significant computational requirements necessitate specialized data centers capable of connecting thousands of chips in large clusters to enable AI model training and deployment at scale.
Microsoft's planned investment represents a considerable commitment to enhancing its AI infrastructure and expanding its global data center network. This aligns with the company's position as OpenAI's primary backer and its status as a leading contender in the AI race, stemming from its exclusive partnership with OpenAI.
Analysts surveyed by Visible Alpha forecast Microsoft's fiscal 2025 capital expenditure (including capital leases) at $84.24 billion. Microsoft's capital expenditure in the first quarter of fiscal 2025 showed an increase of 5.3% to $20 billion.
Brad Smith, Microsoft's Vice Chair and President, highlighted that over half of the planned $80 billion investment will be allocated to the United States. Smith emphasized the US's current leadership in the global AI race, attributing this success to the combined efforts of private investment and innovation from American technology companies of all sizes.