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Microsoft has announced that it will spend around $80 billion in the financial year 2025. This money will be spent on building large data centers and making Artificial Intelligence (AI) technology more powerful.
The AI race after ChatGPT
When OpenAI's ChatGPT was launched in 2022, the world of AI was stirred up. Every company started adding AI flavour to its products and services. But this task is not easy. To run AI, data centers are needed that can work fast by connecting thousands of chips.
Microsoft has already made a huge investment in AI. According to data from Visible Alpha, the company's capital expenditure could reach $84.24 billion in fiscal year 2025. In the first quarter itself, the company spent $20 billion, which is 5.3% more than last year.
Microsoft Vice Chairman Brad Smith said that more than half of this $80 billion will be spent in the US. This will further increase the strength of the company's data centers.
New twist in 365 Copilot
Microsoft is busy improving its famous product Microsoft 365 Copilot. Now other AI models will also be used in it along with OpenAI. This step has been taken so that the cost can be reduced and the speed can be improved. Earlier, Microsoft had described OpenAI's GPT-4 model as its specialty for 365 Copilot. But now the company wants that it should not be completely dependent on OpenAI.
However, Microsoft has clarified that its partnership with OpenAI will continue. The company will also have the right to customize OpenAI's models.
