January 4, 2025 – Microsoft has unveiled an ambitious plan to invest $80 billion in the 2025 fiscal year towards building data centers capable of supporting the computational demands of artificial intelligence.
According to Brad Smith, Microsoft’s Vice-Chair and President, over half of this expenditure is expected to be allocated to the US market by June 2025, which marks the end of the 2025 fiscal year.
Smith emphasized that the US currently holds a leading position in the global AI race, attributed to private investments and technological innovations driven by both startups and established companies. He stated, “At Microsoft, we have experienced this transformation firsthand, especially through our partnership with OpenAI and our engagements with emerging companies like Anthropic and xAI, along with leveraging our own AI software platforms and applications.”
As multiple tech giants are investing heavily in purchasing Nvidia’s graphics processing units for training and running AI models, Microsoft has already invested over $13 billion in OpenAI. This investment extends beyond financial support, as Microsoft also provides cloud computing infrastructure and integrates AI models into its core products, including Windows and Teams.
In the first quarter of the 2025 fiscal year, Microsoft reported a 20billionexpenditureoncapitalinvestmentsandleasedassets,with14.9 billion specifically allocated to real estate and equipment. Amy Hood, Microsoft’s Chief Financial Officer, indicated that capital spending is expected to increase further in the second quarter.
Smith also cautioned the incoming Trump administration to carefully consider its approach to AI regulation, stating, “The current policy focus in the US should be on ensuring that private enterprises can continue to thrive in a supportive environment.”
