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Microsoft to invest $80 Billion on AI-enabled data centres in 2025

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Microsoft to invest $80 Billion on AI-enabled data centres in 2025

Microsoft is planning to invest about $80 billion in 2025 for developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications. The tech giant made this announcement in a blogpost on Friday.

Investment in AI has seen an upsurge since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services.

Since AI requires enormous computing power, this is pushing the demand for specialized data centers that enable tech companies to link thousands of chips together in clusters.

Microsoft has already been investing billions to enhance its AI infrastructure and broaden its data-center network.

As OpenAI's primary backer, the tech giant is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot maker. More than half of Microsoft's $80 billion (roughly Rs. 6,86,200 crore) investment will be in the United States, Vice Chair and President Brad Smith said in the blog post.

"Today, 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," Smith said.