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Microsoft vows to spend USD 80 Billion to set up AI data centers and train models in FY25
Microsoft also plans to institute an international investment fund to add up to $100 billion to support AI research and development, worldwide.

By Kumar Harshit

on January 7, 2025

Microsoft, a Washington-based company, commits to spending approximately USD 80 billion worldwide purposively to set up AI-enabled data centers to train AI models and deploy AI and cloud-based applications worldwide, its blog post stated. Renewing its commitment to technological advancement and AI growth, the company has reiterated its support for AI-based innovations and also the development of the field. 

As the world traces its way into the AI boom, Microsoft advocates developing and upskilling the population to use AI robustly, as people use smartphones and other tools to work, study, or do anything else. 

Upskilling 

As the clouds of uncertainty encapsulate the sky of human hopes in the garb of AI emergence, Microsoft opines to train and upskill the people to make AI a part of their work and process and contribute towards enriching the population. Furthering the same pursuit, Microsoft is on a path to train 2.5 million American students, workers, and community members with AI skills, in 2025 alone to enable their understanding of AI usage and explore new possibilities in work and life.  

Precautions against China 

The blog also encourages the American government to remain vigilant with its exports and AI policy to make AI advancements secure and also keep threats miles away. The blog cautions against getting trapped in a situation as earlier for which the US administration had to tackle Huawei owing to national and cybersecurity reasons. 

Read about Samsung's latest AI innovation at: Samsung unveils Samsung Vision AI in screens with in-built search and translation to empower user personalization

Reaching the competitors 

Expanding its previous commitments to spending more than $35 billion in 14 countries within three years to build trusted and secure AI and cloud data center infrastructure, Microsoft vows to expand it to 40 countries including Global South. 

To enhance efforts and capabilities, Microsft has partnered with the UAE’s sovereign AI company, G42, to bring AI infrastructure to Kenya. Additionally, it is also working with Blackrock and MGX to create an international investment fund to add up to $100 billion of additional funding for AI infrastructure and the AI supply chain.  

AI race 

Microsoft's significant investment underscores the escalating global AI race. The US, China, and the EU are vying for AI dominance, with substantial investments in research, development, and infrastructure. According to a 2023 report by the Center for Data Innovation, the US currently leads in AI research, with the highest number of AI-related publications and patents. However, China is rapidly catching up, with significant government support and a growing talent pool. The EU is also making strides, focusing on ethical AI development and data privacy regulations. This global competition will likely drive rapid advancements in AI technology, but also raise concerns about geopolitical tensions, data security, and the ethical implications of widespread AI adoption.

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