IT giant, Microsoft Incorporated, plans to invest over $80 billion in AI-enabled data centres worldwide by the end of fiscal 2025, with over half of that amount going to the U.S. This was announced in a blog post on Friday by Brad Smith, the president and vice chair of Microsoft.
Smith noted that the planned investment demonstrates Microsoft’s confidence in the U.S. economy and its commitment to enhancing the country’s technological capabilities.
“In FY 2025, Microsoft is on track to invest approximately $80bn to build out AI-enabled data centres to train AI models and deploy AI and cloud-based applications around the world. More than half of this total investment will be in the United States, reflecting our commitment to this country and our confidence in the American economy” he wrote on Friday.
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Criticality of infrastructure to AI development
Smith emphasised how important infrastructure is to the development of artificial intelligence and to guarantee its broad use.
“None of this progress would be possible without new partnerships founded on large-scale infrastructure investments that serve as the essential foundation of AI innovation and use,” he wrote.
The Vice-Chair presented a three-pronged plan for American AI success, starting with investments in cutting-edge AI infrastructure and technology.
“At Microsoft, we see a three-part vision for America’s technology success,” Smith said. “This starts with advances and investments in world-leading American AI technology and infrastructure.”
Skill-building initiatives to increase job prospects
The second pillar of this strategy consists of skill-building initiatives to increase job prospects and encourage the deployment of AI across industries.
To boost the local economy and disperse the advantages of innovation throughout the world, Smith said the ultimate goal is to sell American AI to allies. The Microsoft CEO called AI a “world-changing” technology and voiced excitement about its revolutionary potential.
He said, “AI promises to drive innovation and boost productivity in every sector of the economy. The United States is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally.”
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The private sector’s ingenuity in AI development
Smith attributed the United States’ present leadership in AI to the creativity and investment of the private sector.
He cited Microsoft’s alliances with businesses like xAI, Anthropic, and OpenAI as instances of innovative partnerships that are dynamic.
To support developments in AI models, chips, and apps, the business has invested $80 billion in AI data centres.
Smith stated that these investments will make it possible to train advanced AI models and implement AI-powered applications globally.
“Across the nation, a new generation of AI firms is emerging, each capitalizing on rapid advances in AI models and chips,” Smith wrote.
“And across the economy, software programs are being redesigned to operate as AI-enabled applications,” he emphasised.