Microsoft is investing $80M to expand AI infrastructure

During the fiscal year of 2025, Microsoft intends to invest approximately $80 million to build more AI-enabled datacenters to train AI models and deploy AI and cloud-based applications around the world.

Brad Smith, Vice Chair and President of Microsoft, says there’s a “golden opportunity for American technology and economic competitiveness” to vitalize the United States economy.

Like the introduction of groundbreaking technology like the steam engine, electricity, and computer chips and software, artificial intelligence (AI) has the power to boost innovation and productivity across the economy.

Smith states that the US is currently leading the global AI race thanks to the investment of private capital and innovations by American companies.

“Across the nation, a new generation of AI firms is emerging, each capitalizing on rapid advances in AI models and chips, moving now from Graphics Processing Units (GPUs) to AI Accelerators with Tensors. And across the economy, software programs are being redesigned to operate as AI-enabled applications,” Smith says in a blog post.

To keep ahead of the AI race, Microsoft is going to invest $80M in the fiscal year of 2025 to expand the company’s AI infrastructure. More than half of this amount will be invested in the US to reflect Microsoft’s commitment and confidence in the American economy.

“Achieving this vision will require a partnership that unites leaders from government, the private sector, and the country’s educational and non-profit institutions,” Smith says.

Microsoft’s President also points to the importance of global export of AI technology that’s being developed in the US, and government protection of technological advances through export restrictions to ‘strategic competitors and adversarial nations’ like China.

“The rapid development of China’s AI sector has heightened competition between American and Chinese AI, with much of this likely to play out during the next four years in international markets around the world (…) Given the nature of technology markets and their potential network effects, this race between the US and China for international influence likely will be won by the fastest first mover. Hence, the United States needs a smart international strategy to rapidly support American AI around the world,” Smith stresses.

Microsoft is hopeful for the future, but says that three key ingredients are essential for success: investments in American AI technology and infrastructure, investments in improving AI skills, and exporting American AI technology to allies and friends.

To achieve this, Microsoft needs the help of president-elect Donald Trump. “The most important US public policy priority should be to ensure that the US private sector can continue to advance with the wind at its back. The United States cannot afford to slow its own private sector with heavy-handed regulations,” Smith concludes.