In a move that is looking to secure its dominance with the sector, Microsoft (MSFT) is reportedly planning a $80 billion AI investment that could be monumental for the stock. Indeed, the company has continued to put funds into the emerging technology that has driven so much demand within the stock market.

The Windows software developer was well-known for its $13 billion investment into ChatGPT developer, OpenAI. Although the money is quite substantial, analysts have called it some of the “best money ever spent,” as it could pay off massively in the coming years.

Also Read: Microsoft: Strategic AI Investments Could Push MSFT Stock To $550

Microsoft Planning Mammoth AI Investment as it Looks to Edge Ahead of Competition

There is no denying that Wall Street has taken a particular interest in generative AI over the last several years. With demand growing exponentially, a host of companies have sought to become major players in the space. That has led to an AI arms race developing between some of the largest stock’s in the world.

Yet, there is one that has continued to put their money where their mouth is. Indeed, Microsoft is planning an $80 billion AI investment that could be monumental for its MSFT stock growth. Although the spending worried some investors last year, analysts are still expecting it to pay off in a big way.

Also Read: Microsoft (MSFT) AI Spending Surges: Experts Say it Has $100B Potential

Specifically, the company is set to invest in the expansion of its AI-enabled data centers. Moreover, the investment and expansion will take place throughout the majority of 2025, according to a Yahoo Finance report.

These centers will help to train AI models and explore their use cases within cloud-based applications. Additionally, the report notes that more than half of the $80 billion investment will be placed in the US market. However, the development does reinforce Microsoft’s continued spending issue.

In Q1 of fiscal year 2025, the company’s capital expenditure increased 5.3% to surpass the $20 billion mark. Although that is expected to pay off, it has yet to. Still, they are operating within a market doing much of the same. In December of last year, META announced a $10 billion investment for an AI data center in the United States.