Microsoft president Brad Smith has revealed that the tech giant is set to invest approximately $80 billion in artificial intelligence (AI) this fiscal year. Smith highlighted AI’s transformative potential, comparing it to electricity in its ability to reshape society. He emphasised the importance of the United States maintaining global leadership in AI, which he views as critical to the country’s economic future.
Writing in an online post, Smith called on President-elect Donald Trump and Congress to bolster support for AI innovation by increasing funding for university research and the National Science Foundation. He described the US-China rivalry in AI as a race to establish global standards, with China offering developing nations subsidised access to chips and AI datacentres to lock them into its technology.
Smith argued that the United States must adopt a strategic approach to promote its AI as superior and more reliable, urging international partnerships to counter China’s influence. Microsoft’s own investment, according to Smith, is directed towards expanding AI datacentres, training models, and deploying cloud-based applications worldwide. The company’s fiscal year ends in June 2025.
Rival firms such as Amazon, Google, and OpenAI have also poured billions into AI, despite uncertainties around when these investments will yield significant returns. Smith underscored that the next four years will be pivotal in securing the US’s position as a leader in the AI revolution.
