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January 5, 2025 | 03:32 pm
TEMPO.CO, Jakarta - Microsoft (MSFT.O) plans to invest about US$80 billion in fiscal 2025 to expand data centers used to train artificial intelligence (AI) models and deploy AI and cloud-based applications.
Investment in AI technology has increased sharply since OpenAI launched ChatGPT in 2022, as companies across sectors race to integrate AI into their products and services. AI technology requires massive computing power, driving the need for specialized data centers that allow tech companies to connect thousands of chips in a cluster.
Microsoft has allocated billions of dollars to upgrade its AI infrastructure and expand its data center network. Analysts expect Microsoft’s capital expenditures in fiscal 2025, including capital leases, to reach $84.24 billion, according to Visible Alpha. The company’s capital expenditures in the first quarter of fiscal 2025 rose 5.3 percent to $20 billion.
As a major backer of OpenAI, Microsoft is considered a leader in the AI race among big tech companies thanks to its exclusive partnership with the AI chatbot maker.
More than half of Microsoft's $80 billion investment will be made in the United States, Microsoft Vice Chairman and President Brad Smith said in a blog post.
"Today, the United States leads the global AI race thanks to private capital investment and innovation by American companies of all sizes, from dynamic start-ups to established corporations," Smith said as quoted by reuters.com, Sunday, January 5, 2024.
REUTERS
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