US primary beneficiary of Microsoft $80bn investment in data centres for AI
Microsoft plans to invest about $80 billion in fiscal year 2025 to develop data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies in all sectors seek to integrate artificial intelligence into their products and services.
AI requires enormous computing power, increasing demand for specialized data centers.
Microsoft has invested billions to upgrade its AI infrastructure and broaden its data center network.
More than half of Microsoft’s investment will be in the United States, said vice chairman and president Brad Smith in a blog post.
“The United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” wrote Smith. “At Microsoft, we’ve seen this firsthand through our partnership with OpenAI, from rising firms such as Anthropic and xAI, and our own AI-enabled software platforms and applications. Across the nation, a new generation of AI firms is emerging, each capitalizing on rapid advances in AI models and chips, moving to Graphics Processing Units (GPUs) and AI Accelerator Chips. And across the economy, software programs are being redesigned to operate as AI-enabled applications.”
Smith also wrote in positive terms about the incoming Trump administration and its impact on AI investment.
“The incoming Administration can strengthen these foundational elements, building on the work from President Trump’s first term. In 2019, the President approved an executive order designed to strengthen America’s lead in artificial intelligence. It rightly focused on federal investments in AI research and making federal data and computing resources more accessible. Five years later, President Trump and Congress should expand on these efforts to support advancing America’s AI leadership.”
Smith finished his post with a shot at advancement in China.
“American products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world. With a balanced and common-sense approach to export control policy, the United States can solidify the diplomatic relations that will be critical to global AI adoption,” he said.
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