What $80 billion means for AI development

MICROSOFT

What $80 billion means for AI development

Microsoft plans to spend $80 billion in fiscal year 2025 to expand its data centres, focusing on artificial intelligence.

These centres will train AI models and support cloud-based AI applications globally. More than half of the funding will go to projects in the United States.

The fiscal year ends in June 2025.

Microsoft Vice Chair and President Brad Smith described AI as a major innovation, saying it will boost industry productivity.

He also highlighted the importance of the U.S. leading in AI by strengthening its capabilities and working with other countries.

Here’s what you should know:

• Microsoft is investing $80 billion in AI data centres, with over half the funds going to the U.S.

• AI’s energy use is rising, which could create challenges for power supplies at data centres.

• Collaboration between countries is key to making the most of AI’s potential.

Energy bills incoming

Earlier this year, Microsoft and OpenAI discussed building a $100 billion AI supercomputer, called Stargate.

However, Microsoft later referred to OpenAI as a “competitor” in a regulatory filing.

As AI grows, its increasing energy demands could put extra pressure on power supplies for data centres.

Data centres are the new AI flex.