Microsoft Vice Chairman and President Brad Smith attends the first day of the Internet Summit in Lisbon, Portugal, on November 12, 2024. With 71,528 attendees, artificial intelligence became the most representative industry. (Photo by Rita Franca/NurPhoto via Getty Images)
Noor Photos | Noor Photos | Getty Images
Microsoft The company said in a statement on Friday that it plans to spend $80 billion in fiscal 2025 to build data centers capable of handling artificial intelligence workloads. blog post.
Microsoft Vice Chairman and President Brad Smith writes that more than half of expected AI infrastructure spending will occur in the United States. Microsoft’s fiscal year 2025 will end in June.
“Today, the United States leads the global race for artificial intelligence, thanks to private capital investments and innovation at American companies of all sizes, from dynamic startups to established enterprises,” Smith said. “At Microsoft, We’ve seen this first-hand through our work with OpenAI, emerging companies like Anthropic and xAI, and our own AI software platforms and applications.”
Several top technology companies are spending billions NVIDIA Graphics processing unit for training and running artificial intelligence models. OpenAI’s ChatGPT assistant launched in late 2022 and quickly gained popularity, kicking off an AI race for companies to offer their own generative AI capabilities. Microsoft has invested more than $13 billion in OpenAI, providing the startup with cloud infrastructure and integrating its model into Windows, Teams and other products.
Microsoft reported that in the first quarter of fiscal 2025, global capital expenditures and assets acquired through financial leases were US$20 billion, of which property and equipment expenditures were US$14.9 billion. October will be added consecutively.
The company’s revenue from Azure and other cloud services increased 33% year-on-year, of which 12 percentage points came from artificial intelligence services.
Smith called on President-elect Donald Trump’s incoming administration to protect U.S. leadership in artificial intelligence through education and promoting American AI technology abroad.
“China began to provide subsidies for scarce chips to developing countries and promised to build local artificial intelligence data centers,” Smith wrote. “The Chinese wisely realized that if a country standardizes on China’s artificial intelligence platforms, its future will likely continue to rely on the platform.”
He added: “The best response for the United States is not to complain about competition, but to ensure that we win the competition in the future. This requires us to act quickly and effectively to promote American artificial intelligence as a better alternative.”
watch: Microsoft plans to spend $80 billion this year to build artificial intelligence
About The Author
