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Microsoft The company is set to invest $80 billion in fiscal 2025 to expand its AI data center capabilities, Brad Smith, the company’s president and vice chairman, wrote in an article. Blog post. Microsoft sees AI as the next industrial revolution and wants to participate in it. While analysts were certainly aware of the software giant’s AI ambitions, few, if any, expected the company to bet so much money on a technology that had yet to prove profitable.
“In fiscal year 2025, Microsoft is on track to invest nearly $80 billion to build AI-powered data centers to train AI models and deploy AI and cloud-based applications around the world,” Brad Smith wrote in his blog. He added, “More than half of this total investment will be in the United States, which reflects our commitment to this country and our confidence in the American economy.”
Microsoft’s move further cements its position as a leader in AI, which is of course closely linked to its exclusive partnership with OpenAI. Naturally, this also means that OpenAI will benefit from this significant investment. Analysts – and perhaps competitors such as GoogleMeta and xAI – You probably never expected Microsoft to invest such a large amount in AI, but that’s exactly what’s happening.
“This is higher than most analysts’ estimates.” books Ben Bajarin, CEO and Principal Analyst for Creative Strategy. “We expect all of their CapEx models to rise.”
While Microsoft revealed that the investment will cover data centers, it did not reveal whether this also includes data center power infrastructure, which the company expects to include both data center power infrastructure. small and Large nuclear power plants Able to supply small cities with energy. Since these are capital expenditures, and with plans to operate nuclear power facilities by 2028, the budget may also include spending on these plants. However, this is still just speculation at the moment.
When it comes to actual hardware spending, rumors suggest that Microsoft is one of Nvidia’s primary customers for the Blackwell platform and wants to invest in data center infrastructure that includes 120 kW to Rumored 140 kW Tanks (up from 40 kW today). Redesigning data centers to accommodate such infrastructure is expensive, but Microsoft appears well prepared in terms of its willingness to spend.
The Microsoft chief sees artificial intelligence as the next step in the industrial revolution, similar to the invention of the steam engine, which propelled the United Kingdom to the top of the global economy, and the widespread adoption of electricity in the United States, which ultimately led to the founding of America. As the world’s leading economy. As industries grow more complex and interconnected, AI has become a critical technology in many sectors of the economy.
“Today, the United States is leading the global AI race thanks to private capital investment and innovations by American companies of all sizes, from dynamic startups to established corporations,” Brad Smith wrote. “At Microsoft, we’ve seen this firsthand through our partnership with OpenAI, from startups like Anthropic and xAI, and our AI-enabled software platforms and applications.”
