| | JANUARY 20259MICROSOFT TO INVEST $80 BILLION INTO DATA CENTER INFRASTRUCTUREXPeng Inc, a prominent Chinese smart electric vehicle company, along with the Volkswagen Group China, one of the largest automobile manufacturers globally, are excited to announce that they have signed a memorandum of understanding ("MOU") for strategic collaboration on ultra-fast charging networks in China.According to the MOU, XPENG and Volkswagen Group China will collaborate to create one of the largest ultra-fast charging networks in China. This strategic partnership will make over 20,000 charging piles, managed jointly by both automobile firms, accessible to customers of XPENG and Volkswagen Group China across 420 cities in China. By merging the technological benefits of high-power liquid-cooled super-fast charging with the extensive and complementary networks of both parties in China, customers from both sides will have the chance to experience exceptional fast charging throughout the country.The partnership will also include potential plans for constructing co-branded ultra-fast charging stations in China, aimed at hastening the expansion of the charging network and enhancing operational efficiency.This strategic alliance represents the fourth milestone in the enduring partnership between XPENG and Volkswagen Group. Both sides intend to investigate additional opportunities for strategic collaboration, enhancing technology partnerships, and fortifying the mutually beneficial strategic alliance. Microsoft has announced plans to invest about $80 billion (approximately 6,86,200 crore) in the fiscal year 2025 to enhance its data center infrastructure. This investment is designed to bolster the training of sophisticated artificial intelligence (AI) models and promote the implementation of AI-powered and cloud-based applications, as noted in the company's latest blog entry.The increase in spending centered on AI indicates the rising need to incorporate AI technologies into different products and services, a trend that notably sped up following the introduction of OpenAI's ChatGPT in 2022.The progression of AI demands tremendous computational resources, leading to the necessity for specialized data centers that can connect thousands of advanced chips within extensive clusters. In reaction, Microsoft has been dedicating significant resources to improve its AI infrastructure and broaden its worldwide data-center network.Market analysts predict that Microsoft's overall capital expenditures, which also encompass capital leases, for fiscal 2025 will amount to around $84.24 billion (approximately 7,20,475 crore), based on information from Visible Alpha, according to sources.Significantly, in the initial quarter of fiscal 2025, Microsoft's capital spending rose by 5.3 percent, totaling $20 billion (approximately 1,71,541 crore), highlighting the firm's dedication to leading advancements in AI and cloud computing. XPENG AND VOLKSWAGEN PARTNER TO DRIVE ULTRA-FAST CHARGING NETWORKS
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