Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

The software giant's president, Brad Smith, said Friday in a blog post that more than half of the $80 billion would be spent in the U.S.

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 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.

Tech giant Microsoft is set to invest approximately $80bn to expand its artificial intelligence (AI)-enabled data centres by fiscal year 2025. These centres will train AI models and deploy AI and cloud-based applications worldwide.