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Why Microsoft (MSFT) Is Spending Billions to Expand Its AI Infrastructure Worldwide

Microsoft Corporation (NASDAQ:MSFT) is among the most fantastic stocks every investor should pay attention to. The company appears to be in capacity expansion mode, having recently announced several investments across multiple opportunities.

On November 3, Bloomberg reported that Microsoft Corporation (NASDAQ:MSFT) plans to invest over $8 billion through 2029 in data centers, high-performance computing, and personnel in the United Arab Emirates (UAE). According to the plan, the amount of Nvidia’s advanced chips will be significantly increased, and access to restricted critical equipment will be eased. It had deployed 21,500 chips earlier and expects to bring in an additional 60,400 chips in the coming months.

Pixabay/Public Domain

This plan was announced by Brad Smith, Microsoft’s president, who spoke to Bloomberg Television while attending the Adipec oil conference in Abu Dhabi. He further added:

“This is not money we’re raising here. It’s money we’re investing and spending here. We are seeing demand here explode.”

Microsoft already invested around $1.5 billion in 2024 in buying an Abu Dhabi-based cybersecurity tools developer, G42. Moreover, the company had invested an additional $5.8 billion in the UAE since the start of 2023. That brings the total commitment to over $15 billion between 2023 and 2029.

Apart from the UAE, the company announced a $10 billion investment in a data center in Portugal on November 11. Earlier, the company had inked a $9.7 billion deal with Australian company IREN Ltd. for AI computing capacity.

Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  13 Best Stocks to Buy According to Citadel LLC and Goldman Sachs Defense Stocks: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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