And Microsoft isn’t the one one that’s ramping up its investments into AI-enabled information facilities. Rival cloud service suppliers are all investing in both upgrading or opening new information facilities to seize a bigger chunk of enterprise from builders and customers of huge language fashions (LLMs).
In a report printed in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them commit $200 billion to capex in 2025, up from $110 billion in 2023.
Microsoft is likely one of the greatest spenders, adopted intently by Google and AWS, Bloomberg Intelligence stated. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is decrease than Smith’s declare that the corporate will make investments $80 billion within the fiscal 12 months to June 30, 2025.
Each figures, although, are method larger than Microsoft’s 2020 capital expenditure of “simply” $17.6 billion. The vast majority of the elevated spending is tied to cloud providers and the growth of AI infrastructure wanted to supply compute capability for OpenAI workloads.
Individually, final October Amazon CEO Andy Jassy stated his firm deliberate complete capex spend of $75 billion in 2024 and much more in 2025, with a lot of it going to AWS, its cloud computing division.
