Microsoft is set to double down on its generative artificial intelligence efforts in 2025 following the company's Vice Chair and President, Brad Smith's recent announcement of the tech giant's plans to invest up to $80 billion in building data centers.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Key Takeaways Microsoft is slated to spend $80 billion on data centers needed to train and run artificial intelligence by the end of the fiscal year, president Brad Smith said Friday in a blog post.More than half of the investment will occur domestically,

Over half of Microsoft’s $80 billion in spending will take place in the U.S., Microsoft Vice Chair and President Brad Smith wrote in a Friday blog post.

The massive sum will go towards building out datacenters for training AI models, as well as deploying and improving global AI and cloud-based applications.

Tech giant Microsoft is set to invest approximately $80bn to expand its artificial intelligence (AI)-enabled data centres by fiscal year 2025. These centres will train AI models and deploy AI and cloud-based applications worldwide.