Since OpenAI dropped ChatGPT in 2022, the push for AI investment has skyrocketed, with businesses from all sectors eager to weave artificial intelligence into their offerings.
AI demands a ton of computing power, which is driving the need for specialized data centers that allow tech firms to connect thousands of chips in clusters.
Microsoft has been shelling out billions to boost its AI infrastructure and expand its network of data centers.
Analysts predict that Microsoft's capital spending for fiscal 2025, including capital leases, will hit $84.24 billion, according to Visible Alpha.
In the first quarter of fiscal 2025, the company's capital expenditure climbed 5.3% to $20 billion.
As the main supporter of OpenAI, Microsoft is seen as a top player in the AI competition among Big Tech, thanks to its exclusive partnership with the AI chatbot creator.
Brad Smith, Vice Chair and President, noted in the blog that over half of the $80 billion investment will be directed towards the United States.
"Right now, the U.S. is at the forefront of the global AI race, fueled by private investment and innovations from American companies, whether they’re fresh start-ups or established giants," Smith stated.