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 tech giant will funnel more than half of the investments into U.S.-based facilities, Microsoft Vice Chair and President Brad Smith said Friday.

According to a report from CNBC, Microsoft (MSFT, Financial) is making a bold move to solidify its dominance in the artificial intelligence space and plans to invest $80 billion in AI-enabled data centers by the end of its fiscal 2025.

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.

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.

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.