Microsoft intends to allocate approximately $80 billion (around Rs. 6,86,200 crore) in fiscal 2025 for the development of data centers aimed at training artificial intelligence (AI) models and implementing AI and cloud-based applications, the company announced in a blog post on Friday.
Since the introduction of ChatGPT by OpenAI in 2022, investment in AI has skyrocketed as businesses from various sectors aim to incorporate artificial intelligence into their offerings. The enormous computing power required by AI has increased the demand for specialized data centers that allow technology firms to connect thousands of chips in clusters.
Microsoft has been investing billions to improve its AI infrastructure and expand its data-center network.
Analysts predict that Microsoft’s capital expenditures for fiscal 2025, which includes capital leases, will reach $84. 24 billion (approximately Rs. 7,20,475 crore), as per Visible Alpha.
In the first quarter of fiscal 2025, the company’s capital expenses grew by 5. 3% to $20 billion (about Rs. 1,71,541 crore). As the main financial backer of OpenAI, the tech giant is viewed as a frontrunner among Big Tech firms in the AI sector due to its unique relationship with the AI chatbot developer.
According to Vice Chair and President Brad Smith, more than half of Microsoft’s $80 billion (approximately Rs. 6,86,200 crore) investment will occur in the United States, as stated in the blog post. “Currently, the United States is at the forefront of the global AI competition thanks to the contributions of private capital and the innovations from American companies of all sizes, ranging from agile startups to well-established businesses,” Smith remarked.
