Microsoft President Brad Smith announced on Friday that the company is projected to invest approximately $80 billion in artificial intelligence (AI) during this fiscal year.

In a blog post, Smith highlighted AI's transformative potential, comparing it to electricity in its impact on society. He emphasized that the United States must lead globally in AI to ensure long-term economic success. "The next four years can lay the foundation for America's prosperity over the next 25 years," Smith stated.

Smith urged President-elect Donald Trump and Congress to boost AI innovation by increasing research funding for universities and organizations like the National Science Foundation.

He pointed out that the US and China are in a race to expand their AI systems globally, with the winner likely being the fastest to act. "Technology markets and their network effects favor first movers," Smith explained, stressing the need for a strategic international approach to promote American AI.

Smith also noted that China is actively offering developing nations subsidized computer chips and support for building local AI datacenters. "China understands that countries adopting its AI platforms now will likely continue to rely on them in the future," he said, urging the US to position its AI technology as more reliable and trustworthy, while collaborating with international allies.

For its part, Microsoft is channeling significant resources into building AI datacenters, training advanced models, and deploying cloud-based applications globally. The company's fiscal year 2025 concludes at the end of June.

Microsoft’s competitors, including Amazon, Google, and OpenAI, are similarly investing billions in AI, though the timeline for realizing profits from these initiatives remains uncertain.