Microsoft expects to spend $80 bn on AI this fiscal year

Seattle: Microsoft’s president, Brad Smith, recently shared that the company is gearing up to invest around $80 billion in AI this fiscal year. He believes that AI is going to change everything about our lives. It’s crucial for the U.S. to take the lead in this tech race, especially against China.

Smith likened AI to the electricity of our time, saying the next four years are key for America’s economic future. He urged the U.S. to leverage its strengths and work with international partners to stay ahead.

He also called on President-elect Donald Trump and Congress to boost support for AI innovation, suggesting more funding for research at universities and the National Science Foundation.

According to Smith, both the U.S. and China are racing to spread their AI technologies globally. He pointed out that the fastest mover in this tech race will likely set the standard.

China is already offering developing nations subsidized access to computer chips and assistance in building local AI data centers. Smith warned that if countries adopt China’s AI platform, they might stick with it long-term.

To counter this, he believes the U.S. should quickly promote its AI as the better and more reliable option, rallying allies to join the effort.

Microsoft is on track to invest heavily in AI data centers, training models, and deploying cloud applications worldwide. The company’s fiscal year ends in June 2025. Other tech giants like Amazon, Google, and OpenAI are also pouring billions into AI, though it’s still uncertain when they’ll see returns on those investments.