Microsoft to spend $80B on AI in 2025

Microsoft, the American multinational technology company, announced the spending of approximately $80 billion on artificial intelligence (AI) projects in 2025.

Microsoft and AI data centers

Microsoft is expected to spend about $80 billion on artificial intelligence (AI) data enabled centers in 2025. According to the company, these centers will take place in the US and will be expected to handle artificial intelligence workloads.

Brad Smith, Microsoft Vice Chair and President, stated: “Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises. At Microsoft, we’ve seen this firsthand through our partnership with OpenAI, from rising firms such as Anthropic and xAI, and our own AI-enabled software platforms and applications.”

As companies are currently racing towards AI technologies nowadays, Microsoft took a lead by investing nearly $13 billion in OpenAI, the American artificial intelligence (AI) research organization. Notably, Microsoft provides OpenAI with cloud infrastructure and integrated its model into its various products, including Windows, Teams, and others.

Microsoft is also aiming to increase its revenues through investing into artificial intelligence (AI) models.

“China is starting to offer developing countries subsidized access to scarce chips, and it’s promising to build local AI data centers. The Chinese wisely recognize that if a country standardizes on China’s AI platform, it likely will continue to rely on that platform in the future. The best response for the United States is not to complain about the competition but to ensure we win the race ahead. This will require that we move quickly and effectively to promote American AI as a superior alternative,” Smith added.