TNB Tech Minute: Microsoft to Spend $80 Billion on AI Data Centers
WSJ Tech News Briefing
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Here's your TNB Tech Minute for Friday, January 3rd. I'm Julie Chang for The Wall Street Journal. Microsoft plans to invest $80 billion in data centers for artificial intelligence tech before its fiscal year ends in June.
That's according to company president Brad Smith, who disclosed the number today in a blog post. He also urged the incoming Trump administration to support policies friendly to Microsoft's AI ambitions, including investments in research and worker training and targeted export controls on China. In the first quarter of its fiscal year, which ended last September, Microsoft spent $20 billion on capital expenditures and leases, primarily for data centers.
Shares of Rivian Automotive soared, closing up 24% after the electric vehicle startup beat analysts' expectations for deliveries and said it's no longer hampered by a part shortage that had constrained production. Rivian said it delivered over 14,100 vehicles in the fourth quarter. Analysts had expected 13,000 vehicle deliveries. The company posted deliveries of more than 51,500 vehicles for all of 2024, in line with its forecast for the year.
And China is adding smartphones, tablets, and smartwatches to a subsidy program designed to spur domestic spending. Last year, China introduced trade-in programs aimed at replacing home appliances and cars. The program successfully boosted auto demand. It's all part of an effort to revive subdued consumption in the country. Shares of Chinese smartphone makers and home appliances companies surged in Hong Kong following the announcement. The top performer was Xiaomi, which rose 6.6%.
For a deeper dive into what's happening in tech, check out Monday's Tech News Briefing podcast.