Microsoft to spend $80 billion in FY’25 on data centers for AI

Microsoft plans to spend $80B in FY’25 on AI data centers, with half in the U.S.

: Microsoft is set to allocate $80 billion in fiscal 2025 for data centers centered around AI workloads. Vice Chair Brad Smith mentioned over half of the funds will be invested in the U.S., emphasizing AI's future impact. In April, discussions with OpenAI involved a costly $100 billion supercomputer project named Stargate. Microsoft's declared OpenAI a competitor in an SEC filing later in the year.

Microsoft has committed to a staggering $80 billion investment in fiscal 2025 focused on building data centers that support artificial intelligence workloads. According to a blog post by the company, the initiative aims to train AI models and distribute AI-driven applications globally, with more than half of the expenditure targeted within the United States, as outlined by Microsoft Vice Chair Brad Smith.

Smith highlighted the transformative potential of AI, describing it as a general-purpose technology that could revolutionize innovation and productivity across all economic sectors. He further projected that the United States is excellently positioned to lead this technological advancement, provided it leverages its capabilities and enhances international partnerships effectively.

Earlier in April, Microsoft and OpenAI discussed developing a data center with an AI supercomputer project, Stargate, potentially costing $100 billion. Interestingly, later that year, Microsoft recognized OpenAI as a competitor in its SEC filings, which marked a shift in their business dynamics. The growing demands of AI computing suggest significant electrical consumption, potentially causing future power shortages for such expansive data facilities.

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