Microsoft Budgets $80 billion on AI-enabled Centers
Microsoft stated it will invest $80 billion in fiscal 2025 to build data centers capable of managing workloads related to artificial intelligence.
Microsoft President and Vice Chair, Brad Smith, stated that more than half of the anticipated investment in AI infrastructure will occur in the United States.
The fiscal year of Microsoft 2025 concludes in June. According to Smith, “Private capital investments and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises, have placed the United States at the forefront of the global AI race today.”.
Microsoft reported spending $14.9 billion on property and equipment in the first quarter of fiscal 2025, out of $20 billion in capital expenditures and assets acquired under finance leases worldwide. Amy Hood, the chief financial officer at Microsoft, stated in October that capital expenditures would rise sequentially in the fiscal second quarter.
Microsoft’s revenue from Azure and other cloud services grew by 33% in the fiscal first quarter, with AI services accounting for 12 percentage points of the increase.
Smith urged Donald Trump’s administration to uphold the nation’s leadership in artificial intelligence by promoting AI technologies. Smith wrote, “China is promising to build local AI data centers and is beginning to offer developing countries subsidized access to scarce chips.”.
The Chinese are astute enough to understand that a nation will likely remain dependent on China’s AI platform if it standardizes it. The best course of action for the United States is to make sure we win the race ahead rather than whine about the competition. ‘We must act swiftly and decisively to position American AI as a better substitute. “. He added.
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