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.

Microsoft (MSFT) is planning to spend tens of billions of dollars to build on its artificial intelligence ambitions this year.

Much of the $80B will go towards data centers to be used for artificial intelligence, as AI progress has resulted in the need for “large-scale infrastructure investments that serve as the essential foundation of AI innovation and use,” Microsoft Vice President Brad Smith wrote in the post.

Microsoft announced it would be investing $80 billion of its budget for the fiscal year 2025 on building AI specific data centers.

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,

Microsoft plans to invest $80 billion in developing AI-focused data centers by 2025. This follows OpenAI's launch of ChatGPT and the growing demand for AI-powered applications.

Microsoft plans to invest around $80 billion in the expansion of data centres for artificial intelligence (AI) during the current financial year - with more than half of that to be invested in the United States.