Microsoft to Invest $80 Billion in AI Datacenters & Cloud Tech

Microsoft is set to invest approximately $80 billion in artificial intelligence (AI) this fiscal year, focusing on the development of AI datacenters, training advanced AI models, and deploying cloud-based applications globally. This commitment highlights the company’s dedication to AI as a transformative technology that will shape various industries worldwide.

Brad Smith, Microsoft’s president, emphasized AI’s potential to revolutionize every aspect of life, likening its impact to that of electricity. He called for the United States to maintain its leadership in AI innovation, stressing the importance of strategic international partnerships and increased funding for research to support AI development. Smith also highlighted the competition between the US and China in the race for global AI influence, with China offering developing countries subsidized access to AI resources and platforms.

As part of its global strategy, Microsoft plans to significantly boost its AI infrastructure and capabilities, ensuring its technology remains at the forefront of the growing field. In line with this vision, Microsoft rivals such as Amazon, Google, and OpenAI are also investing heavily in AI, although the financial returns on these investments are yet to be fully realized. Microsoft’s fiscal year 2025 ends in June, marking a key milestone in the company’s AI push.