Science & Technology

Microsoft Plans to Invest $80 Billion on AI-Enabled Data Centers

Microsoft plans to invest about $80 billion in the development of data centers for training artificial intelligence models and deployment of AI and cloud-based apps in fiscal 2025.

Microsoft Plans to Invest $80 Billion on AI-Enabled Data Centers

The mentioned intention is stated in a message that was published on the blog of the specified technology giant on Friday, January 3.

Investments in the artificial intelligence industry have been on a high-intensity growth trajectory amid the so-called AI boom. In fact, the debut of ChatGPT from OpenAI in November 2022 became a kind of starting point for large-scale global interest in digital intelligence. This chatbot has impressed the consumer audience with its abilities related to processing large amounts of information and generating original content based on user prompts.

Currently, companies from various industries are striving to integrate artificial intelligence into their products and services.

Machine intelligence requires huge computing power. Against this background, there is a growing demand for specialized data centers that allow technology companies to link thousands of chips into clusters.

According to Visible Alpha, analysts expect Microsoft’s capital expenditures, including capital leases, to reach $84.24 billion in fiscal 2025.

It is worth noting that the technology giant is the main backer of OpenAI, which provides it with special opportunities in the so-called artificial intelligence race.

Microsoft Vice Chair and President Brad Smith said that more than half of the planned $80 billion investments will be in the United States. He also noted that the US is currently leading the artificial intelligence race thanks to private capital investments and innovations from domestic companies of all sizes.

As we have reported earlier, OpenAI to Give Microsoft Access to Its AGI.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.