In a blog post on Friday, Microsoft (MSFT.O) stated that it will invest roughly $80 billion in fiscal 2025 to build data centers for the deployment of cloud-based apps and artificial intelligence (AI) models.

Since OpenAI introduced ChatGPT in 2022, investment in AI has increased as businesses from a variety of industries look to incorporate AI into their goods and services.

Due to AI’s high processing demands, there is a growing need for specialized data centers that allow IT companies to connect thousands of processors in clusters.

Microsoft has been spending billions to expand its network of data centers and improve its AI infrastructure.

According to Visible Alpha, analysts project that Microsoft will spend $84.24 billion on capital expenditures, including capital leases, in fiscal 2025.

In the first quarter of fiscal 2025, the company’s capital expenditures increased by 5.3% to $20 billion.

Due to its exclusive cooperation with the AI chatbot developer, the tech giant, which is OpenAI’s main investor, is regarded as a top competitor among Big Tech companies in the AI race.

In the blog post, Vice Chair and President Brad Smith stated that the United States will get more than half of Microsoft’s $80 billion investment.

“Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith stated.