Microsoft will invest $80 billion on AI and data centers in the new year

Information was shared by Microsoft in its blog post on Friday. It has announced that it will invest about $80 billion (about Rs 6,86,200 crore) in the financial year 2025 to develop artificial intelligence (AI) models and on AI and cloud-based research data centers.

Since OpenAI launched the chatbot service ChatGPT in 2022, investment in artificial intelligence has catapulted manifold. Companies everywhere are trying their best to give their products an AI-enabled touch so that they continue to be upgraded with time.

The whole AI architecture requires a lot of computing power, thus driving the need for a specifically purposed data center that can interconnect thousands of chips in clusters. Microsoft already invested billions to extend its AI capacity and expand its network of data centers.

According to Visible Alpha, Microsoft's capital expenditure, including capital leases, is expected to reach $84.24 billion approximately Rs. 7,20,475 crores in fiscal 2025. Microsoft's capital expenditure in the first quarter of fiscal 2025 jumped by 5.3 percent to $20 billion approximately Rs. 1,71,541 crores.