Microsoft president Brad Smith announced on Friday that the company will invest approximately $80 billion in artificial intelligence (AI) during its 2025 fiscal year, emphasizing that AI will reshape industries and societies globally.
“In many ways, artificial intelligence is the electricity of our age,” Smith wrote in an online post, stressing the importance of the United States leading the AI revolution to secure long-term economic success.
Smith urged President-elect Donald Trump and Congress to increase federal support for AI innovation, particularly through expanded funding for university research and institutions like the National Science Foundation. He underscored the need for smart international strategies to promote American AI technologies, especially in response to China’s expanding influence in the AI space.
“China and the United States are racing to spread their AI systems to other countries,” Smith said. “Given the network effects of technology markets, the race will likely be won by the fastest first mover.”
Smith noted that China is proactively offering developing countries subsidized access to AI technologies, including computer chips and data center support, as a way to encourage them to standardize on Chinese AI platforms.
“The Chinese wisely recognize that if a country standardizes on China’s AI platform, it likely will continue to rely on that platform in the future,” he said.
To counter this, Smith recommended that the US promote its AI technologies as superior and more trustworthy while building alliances to extend its influence in the global AI market.
Microsoft’s $80 billion AI investment includes funding for AI data center construction, model training, and cloud-based application deployment worldwide. This massive spending reflects the company’s commitment to staying ahead in the AI arms race.
Rival tech giants Amazon, Google, and OpenAI are also pouring billions of dollars into AI development. However, the timeline for significant returns on these investments remains unclear.
Smith’s comments reinforce the belief that AI will become the foundation for future economic growth, making the current investments pivotal for long-term technological leadership.
Microsoft’s fiscal year 2025 ends in June, indicating the company has six more months to hit its $80 billion investment goal.
