Microsoft will focus on the development of artificial intelligence (AI) this year. The company plans to invest $80 billion, equivalent to approximately Rp1.296 trillion, to enhance data centers for training AI models.
1. Development of AI Data Centers
In a post on Friday, January 3, 2025, the company announced that these data centers will be utilized for training AI and implementing AI and cloud-based applications.
According to Reuters on Sunday, January 5, 2025, Microsoft has invested billions to upgrade its AI infrastructure and expand its network of data centers.
Analysts estimate that Microsoft's capital expenditures for fiscal year 2025, including capital leases, will reach $84.24 billion, as reported by Visible Alpha.
The company's capital spending in the first quarter of fiscal year 2025 increased by 5.3% to $20 billion.
As a major supporter of OpenAI, this technology giant is viewed as a key competitor among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot developer.
2. Majority of Investment in the U.S.
Brad Smith, Vice Chair and President of Microsoft, stated that more than half of the $80 billion investment will take place in the United States. "Currently, the United States leads the global AI race due to private capital investment and innovation by American companies of all sizes, from dynamic startups to established firms," Smith remarked.
3. Surge in AI Investment
It is noted that investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across various sectors strive to integrate artificial intelligence into their products and services.
AI requires substantial computing power, driving demand for specialized data centers that enable technology companies to connect thousands of chips together in clusters.