Microsoft plans to spend $80 billion on data centers dedicated to artificial intelligence by the end of the current fiscal year, according to a blog post by the company’s President Brad Smith cited in an Investopedia report.
More than half of the colossal budget will focus on projects within the United States.
Smith described the U.S. as “a global leader in AI development, driven by partnerships between tech companies, chip manufacturers, and software developers.”
He highlighted Microsoft’s role in sustaining this momentum, saying, “The company’s domestic investments will play a key part in shaping the future of AI.”
The announcement comes amid a surge in spending by American tech firms on AI infrastructure. The investments are complemented by a push to integrate cleaner energy sources, including nuclear power, to meet the energy demands of these advanced systems.
“Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith said in his statement.
However, Smith noted that private sector efforts alone cannot secure the U.S.’s leadership in AI. He called on the incoming Trump administration to seize what he called a “golden opportunity” by increasing funding for AI research and crafting a national talent development strategy.
Such measures, he argued, would help train Americans in AI technologies and create a stronger domestic workforce to support the industry.
Smith also highlighted the importance of thoughtful regulation, urging the government to consider how policies could influence the competitiveness of American firms in the global market.
He warned against heavy-handed regulations that could stifle innovation, especially as competition with China intensifies.
“The most important U.S. public policy priority should be to ensure that the U.S. private sector can continue to advance with the wind at its back,” Smith wrote. “The United States cannot afford to slow its own private sector with heavy-handed regulations.”