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.

Much of the $80B will go towards data centers to be used for artificial intelligence, as AI progress has resulted in the need for “large-scale infrastructure investments that serve as the essential foundation of AI innovation and use,” Microsoft Vice President Brad Smith wrote in the post.

Microsoft announced it would be investing $80 billion of its budget for the fiscal year 2025 on building AI specific data centers.

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 plans to invest $80 billion in developing AI-focused data centers by 2025. This follows OpenAI's launch of ChatGPT and the growing demand for AI-powered applications.

In the Fiscal Year 2025 ending in June, Microsoft plans investing over $80 billion to create data centres for training

Microsoft plans to invest around $80 billion in the expansion of data centres for artificial intelligence (AI) during the current financial year - with more than half of that to be invested in the United States.

Microsoft (MSFT) is planning to spend tens of billions of dollars to build on its artificial intelligence ambitions this year.