Microsoft is set to double down on its generative artificial intelligence efforts in 2025 following the company's Vice Chair and President, Brad Smith's recent announcement of the tech giant's plans to invest up to $80 billion in building data centers.

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.

While Microsoft is thinking on a global scale, the company's Vice Chair and President said more than half of this total investment will be in the US

Microsoft plans to spend $80 billion in fiscal 2025 on the construction of data centers that can handle artificial intelligence workloads, the company said in a Friday blog post.

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

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.

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.