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Microsoft Plans to Invest $80 billion on AI-enabled Data Centers in 2025

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
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Microsoft Plans to Invest $80 billion on AI-enabled Data Centers in 2025

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo

Microsoft is planning to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate artificial intelligence into their products and services.
AI requires enormous computing power, pushing demand for specialized data centers that enable tech companies to link thousands of chips together in clusters.
Microsoft has been investing billions to enhance its AI infrastructure and broaden its data-center network.
Analysts expect Microsoft's fiscal 2025 capital expenditure including capital leases to be $84.24 billion, according to Visible Alpha.
The company's capital expenditure in the first quarter of fiscal 2025 rose 5.3% to $20 billion, Reuters reported.
As OpenAI's primary backer, the tech giant is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot maker.
More than half of Microsoft's $80 billion investment will be in the United States, Vice Chair and President Brad Smith said in the blog post.
"Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises," Smith said.

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Nvidia Ramps up AI Tech for Games, Robots and Autos

Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
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Nvidia Ramps up AI Tech for Games, Robots and Autos

Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)

Nvidia chief executive Jensen Huang made a rock star appearance at a packed arena late Monday, touting AI chips and software for robots, cars, video games and more.

After years of being on the sidelines at the annual Consumer Electronics Show (CES) in Las Vegas, talk of computer chips was a hot ticket as people queued for hours to fill an arena to hear Huang talk AI.

"When you see application after application that is AI driven, at the core of it is that machine learning has changed how computing will be done," Jensen said during a one-man presentation on stage.

"There are so many things you can't do without AI."

Jensen's keynote came on the eve of the opening of the CES show floor, and on a day that Nvidia shares closed at a new record, giving the Silicon Valley company a market valuation of more than $3.6 trillion.

Nvidia's graphics unit processors (GPUs) for powering AI in datacenters have been snapped up by Google, Microsoft, Meta, OpenAI and others racing to be leaders in the technology.

During a lengthy presentation in Michelob Ultra Arena at Mandalay Bay resort, Huang introduced a GPU for ramping up AI capabilities in personal computers where Nvidia won the loyalty of gamers in the company's early days.

Nvidia touted the new GeForce RTX 50 series for desktop and laptop computers based on Blackwell chip architecture as its most advanced consumer GPUs.

"Blackwell, the engine of AI, has arrived for PC gamers, developers and creatives," Huang said.

PCs enhanced with RTX chips for AI capabilities will be available from an array of manufacturers including Acer, Dell, HP, Lenovo, Razer and Samsung, according to Nvidia.

An AI PC displayed during the presentation was priced at $1,299, built with the $549 RTX chip at the starting point of the new GPU line-up.

Along with rapid rendering of rich gameplay action, Nvidia AI technology will enable the creation of characters that perceive, plan and act like human players, according to Nvidia.

Such autonomous characters are being integrated into games including "PUBG: Battlegrounds", according to Nvidia.

Huang also introduced a family foundation models open to the world for advancing "physical AI" that enables robots to understand and engage in real-world tasks.

Nvidia expanded partnerships and technology for autonomous capabilities in cars as well, with Toyota joining its roster of partners.