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.

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.

Microsoft plans to invest $80 billion in AI data centers, urging increased funding for AI research and a national talent strategy.

Microsoft is set to invest $80 billion in fiscal 2025 to expand its AI datacenter capabilities, Brad Smith, the company's president and vice chairman wrote in a blog post. Microsoft sees artificial intelligence as the next industrial revolution and wants to participate in it.

Microsoft has announced plans to allocate approximately $80 billion (around Rs. 6,86,200 crore) in fiscal year 2025 to expand its data centre infrastructure, Reuters reported. This investment aims to support the training of advanced artificial intelligence (AI) models and facilitate the deployment of AI-driven and cloud-based applications,