Microsoft will invest $80 billion in fiscal 2025 to expand data centres for training artificial intelligence (AI) models and supporting AI and cloud-based applications. This was shared in a blog post by the company.

The launch of ChatGPT by OpenAI in 2022 has increased AI investments as businesses aim to include AI in their operations. AI development requires significant computing resources, increasing the demand for data centres that connect large numbers of chips in clusters.

Microsoft has been allocating resources to strengthen its AI infrastructure and expand its data centre network. Analysts project the company’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, based on data from Visible Alpha. In the first quarter of fiscal 2025, its capital expenditure rose by 5.3% to $20 billion.

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As OpenAI’s backer, Microsoft is seen as a strong player in the AI field, supported by its partnership with the AI chatbot developer. More than half of the planned $80 billion investment will focus on projects in the United States, according to Vice Chair and President Brad Smith. He stated that the country’s position in the AI sector is driven by private capital and contributions from companies of different sizes.

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