More than half of the investment has been earmarked for infrastructure in the U.S.. Microsoft President Brad Smith frames AI investment as key to economic growth.

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.

Microsoft MSFT announced plans to spend $80 billion in fiscal 2025 on constructing data centers designed for artificial intelligence workloads. Over half of this spending will be focused on the United States, according to a blog post by Brad Smith, Microsoft Vice Chair and President. The fiscal year will conclude in June 2025.

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.

As Microsoft pledges $80 billion on data center spending this year, Michael Stewart of M12 - Microsoft's venture arm - says it will be the quality of AI that will matter in the long run. He joins Caroline Hyde on "Bloomberg Technology" to discuss.

According to its management, Microsoft (NASDAQ: MSFT) will invest $80 billion in data centers over the next year. To put this in some context, Microsoft’s revenue in the most recently reported quarter was $65.

With those whopping returns who could argue with the premis... oh wait The AI datacenter spending splurge looks likely to continue in 2025, with Microsoft alone saying it will invest $80 billion this year on building out infrastructure to train and deploy AI models.