The company’s capital expenditure for the first quarter of fiscal 2025 increased by 5.3%, reaching $20 billion.
In a blog post on Friday, Microsoft announced its plans to invest approximately $80 billion in fiscal 2025 to develop data centers that support training artificial intelligence (AI) models and running AI and cloud-based applications.
Following OpenAI’s launch of ChatGPT in 2022, companies across various industries have been integrating AI into their products and services, driving increased investment in AI. AI requires significant computational power, creating a demand for specialized data centers that enable tech companies to cluster thousands of chips together.
Microsoft is investing billions to expand its AI infrastructure and broaden its datacenter network. Analysts, as per Visible Alpha, project Microsoft’s capital expenditure for fiscal 2025, inclusive of capital leases, to amount to $84.24 billion.
The company’s capital expenditure for the first quarter of fiscal 2025 rose by 5.3% to $20 billion (around ₹1,71,541 crore).
More than half of Microsoft’s $80 billion investment will be in the United States, according to Vice Chair and President Brad Smith in the blog post.
Smith remarked, “The United States is at the forefront of the global AI race, driven by private capital investments and the ingenuity of American companies, ranging from agile startups to established industry leaders.”
