Is AI The Big Tech Theme Of 2025? Microsoft's Rs 6.86 Lakh Cr Outlay May Provide Clue - Details

Brad Smith, the president of Microsoft on Friday said that the company is on track to pump about Rs 6.86 lakh crore into artificial intelligence (AI) this fiscal year.

AI is poised to transform all aspects of life, according to Smith and it is important that the United States be the global leader when it comes to the technology, he wrote in an online post.

"In many ways, artificial intelligence is the electricity of our age, and the next four years can build a foundation for America's economic success for the next quarter century," Smith said.

"The United States is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally."

Smith urged President-elect Donald Trump and Congress to expand their support for AI innovation by increasing funding for research at universities and the National Science Foundation.

China and the US are in a tug of war and a race against time to spread their AI systems to other nations, so as to become the de facto standard, according to Smith.

Smith said, "Given the nature of technology markets and their potential network effects, this race between the US and China for international influence likely will be won by the fastest first mover."

Therefore, he thinks that the United States needs a smart international strategy to rapidly support American AI all over the world.

China has also started offering other countries subsidized access to computer chips that are scarce, he said, adding that the Chinese wisely recognize that if a country standardizes on China's AI platform, it is most likely that they will continue to rely on that platform in the future.

Thus, he emphasised on the need for US to move quickly to promote its AI technology as superior and more trustworthy.

Microsoft, is set to invest approximately ₹6.86 lakh crores this year to build AI datacentres, train AI models and deploy cloud-based applications around the world.

For Microsoft, the fiscal year ends at the close of June.

(With AFP inputs)