News: 0175824041

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Microsoft Expects To Spend $80 Billion on AI-Enabled Data Centers in Fiscal 2025

(Friday January 03, 2025 @05:20PM (msmash) from the music-not-stopping dept.)


Microsoft plans to [1]spend $80 billion in fiscal 2025 on the construction of data centers that can handle AI workloads, the company said in a Friday blog post. From a report:

> Over half of the expected AI infrastructure spending will take place in the U.S., Microsoft Vice Chair and President Brad Smith wrote. Microsoft's 2025 fiscal year ends in June.



[1] https://www.cnbc.com/2025/01/03/microsoft-expects-to-spend-80-billion-on-ai-data-centers-in-fy-2025.html



Re: (Score:2)

by smooth wombat ( 796938 )

$80 billion to a $3+ trillion company is just a good write off.

Re: (Score:2)

by blahbooboo2 ( 602610 )

> $80 billion to a $3+ trillion company is just a good write off.

You confuse stock valuation with revenue. Regardless, MS can afford the expense but will it ever pay back in massive revenue increases? Unlikely..

Re: (Score:3)

by Darinbob ( 1142669 )

True, lots of people make this valuation mistake. MS does not have trillions in its bank account. Most companies don't keep lots of cash on hand, but it's tied up in stock. Nopt all the comapny's stock, because the company doens't own the majority of the stock, but usually only retains enough to give out grants and from strategic buy backs to increase the stock price. Valuation includes assets, like real estate, intellectual property, physical products not yet sold, divisions that could be split off of

Re: (Score:2)

by Darinbob ( 1142669 )

Yes it gets written off, rather than put towards something useful. Like improving Windows and fixing bugs.

Re: (Score:2)

by smooth wombat ( 796938 )

They've had almost 30 years to improve Windows. How much longer would you like to give them?

MS should pay for the energy infrastructure (Score:2)

by gtall ( 79522 )

$80 Billion on a crap shoot with the tax and rate payers footing the bill for the energy infrastructure costs. Nice move, MS. Next you'll be forcing all your sheep to use it whether they like it or not.

Once upon this midnight incoherent,
While you pondered sentient and crystalline,
Over many a broken and subordinate
Volume of gnarly lore,
While I pestered, nearly singing,
Sudddenly there came a hewing,
As of someone profusely skulking,
Skulking at my chamber door.