Microsoft plans to invest $80 billion in building data centers by fiscal 2025 to enhance AI development and usage. This initiative comes amid a "golden opportunity for American AI, " as stated by Microsoft Vice Chair and President Brad Smith in a blog post on Friday, January 3. Over half of this investment will be concentrated in the United States. These expansive data centers are being constructed by various companies, relying heavily on skilled electricians and pipefitters, many of whom are part of labor unions. They incorporate advancements in electricity and liquid cooling systems. Reportedly, demand for AI chips pushed Nvidia to be the leading global company by market capitalization in 2024, with its value soaring from $1. 2 trillion in 2023 to $3. 28 trillion by 2024. The AI evolution reshaped the tech industry in 2024, with AI not just being a trend but becoming fundamental to modern tech firms, according to a PYMNTS report on January 1. Alongside investing in AI infrastructure, Smith emphasized the importance of skilling programs to support AI adoption. Microsoft plans to train 2. 5 million Americans in AI skills. "AI will disrupt the economy and displace some jobs, " Smith noted. "However, through our skilling efforts, we've gained confidence that AI will create new opportunities outweighing many upcoming challenges. " Fostering "American AI" also involves exporting AI to global allies.

While the U. S. must protect sensitive AI components with export controls, it should also strategize to promote American AI globally and compete with China internationally. "Overregulation could impede the U. S. private sector, " Smith commented. "The U. S. needs a balanced export control policy that secures AI components in reliable data centers while enabling American companies to expand swiftly and be a consistent supply source to allied countries. "