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The United States must develop a comprehensive national strategy to stay ahead in the global AI race, focusing on research and development funding, education, and workforce development, while ensuring that American tech firms are not hindered by restrictive regulations, Microsoft President Brad Smith writes in a post today.
This message is delivered on the first day of the new Congress in Washington, D.C., and two weeks before the commencement of President-elect Donald Trump’s second term.
“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 writes, describing it as a “golden opportunity.”
The post also addresses the competitive challenge posed by China in artificial intelligence, highlighting Microsoft’s role in advancing AI development.
Detailing the company’s initiatives, Smith confirms that Microsoft will allocate $80 billion to datacenters for AI training and deployment in this fiscal year, which started in July.
This capital expenditure figure is gaining considerable attention, but it’s not entirely unexpected. Microsoft reported $20 billion in capital spending in the first fiscal quarter of 2025, ending in September, and CFO Amy Hood indicated that the investment would incrementally increase in the second fiscal quarter before eventually declining.
In his post today, Smith highlights that more than half of the spending will be in the U.S.
Smith emphasizes that AI success will require collaboration among U.S. government leaders, the private sector, education, and non-profits.
He acknowledges China’s advancements in AI, attributing its swift progress partly to significant government investments and a coordinated national strategy. Smith notes that China is aiming to establish itself as a global AI leader by leveraging its large population, vast data resources, and strategic focus on technological innovation.
Every general-purpose technology creates new opportunities across the economy. But it requires companies and countries to invest in new infrastructure and equip people with the right skills. And that’s what we are doing in this AI era, starting in the US. https://t.co/7LjGJlBgxW
— Satya Nadella (@satyanadella) January 3, 2025
Smith references China’s previous investments in 5G wireless infrastructure and the security issues that subsequently emerged for the U.S. due to the spread of Huawei’s 5G products globally.
Similarly, he asserts that one critical factor now is to ensure the global adoption of American AI.
“American products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure worldwide,” he writes, linking this issue to the tariff debate: “With a balanced and common-sense approach to export control policy, the United States can strengthen the diplomatic relations that will be crucial for global AI adoption.”
Read Smith’s post here.
