As we usher in a new year, the United States stands at a pivotal crossroads in technology and economic competitiveness. With the inauguration of a new president, the nation has an unprecedented opportunity to harness artificial intelligence (AI) to invigorate its economy and secure long-term global leadership.
Much like electricity transformed the 20th century, AI is poised to redefine the 21st, and the next four years could set the stage for America's economic success for decades to come.
At Microsoft, we envision a three-part strategy for America's AI-driven future:
Investing in world-leading AI technology and infrastructure.
Championing widespread skilling programs to integrate AI across the economy.
Exporting American AI expertise to allies and partners worldwide.
Achieving this vision will require collaboration among government, private sector leaders, and educational institutions. Together, these efforts can position the U.S. as the global epicenter of AI innovation and adoption.
Laying the Foundation for AI Leadership
America's technological strength has long been rooted in its dynamic private sector. The U.S. currently leads the global AI race, thanks to robust investments by companies of all sizes. At Microsoft, our collaboration with OpenAI and emerging players like Anthropic and xAI demonstrates the vitality of this ecosystem. Across industries, businesses are rapidly integrating AI into their operations, leveraging advances in AI models and hardware, including GPUs and AI accelerator chips.
However, this progress hinges on large-scale infrastructure investments. In fiscal year 2025, Microsoft plans to invest approximately $80 billion in AI-enabled data centers, with over half of this amount allocated to U.S. projects. These facilities will not only train AI models but also support cloud-based applications, fueling innovation nationwide. Such investments reflect our confidence in the American economy and our commitment to driving its technological future.
The Ecosystem Behind AI Innovation
AI innovation depends on a competitive and collaborative technology ecosystem. Open-source development plays a crucial role, supported by contributions from chip suppliers, applications companies, system integrators, and software developers. Moreover, the construction of massive data centers relies on partnerships with manufacturers, electricians, and skilled labor unions. Together, these diverse groups form the backbone of America’s tech sector, driving economic growth and job creation.
The foundation of American technological success lies in research and development (R&D). Since World War II, the nation has excelled in fostering R&D through two key pillars:
Basic Research: This publicly funded research, often conducted at universities, drives groundbreaking discoveries. Institutions like the National Science Foundation play a vital role in supporting such initiatives.
Product Development: Companies—from startups to tech giants like Microsoft—invest heavily in translating research into market-ready innovations. The synergy between these two pillars has been instrumental in maintaining America’s technological edge.
The incoming administration can build on this legacy by increasing funding for basic research and fostering stronger partnerships between academia and industry. Expanding on the AI policies initiated during President Trump’s first term—including his 2019 executive order on AI—can further bolster America’s leadership in this field.
Preparing America’s Workforce for the AI Revolution
AI's transformative potential extends beyond technology to the workforce. Skilling programs are critical to ensuring that American workers are equipped to thrive in an AI-driven economy. President Trump’s 2019 AI Executive Order emphasized the integration of AI into federal education grants, fellowship programs, and curricula. It also called for the development of apprenticeships and STEM-focused skills programs to build a robust talent pipeline.
Microsoft’s skilling initiatives align with this vision. By offering training programs and resources, we aim to empower individuals across industries to harness AI’s potential. From healthcare to manufacturing, AI has the power to enhance productivity and create new career opportunities, provided workers are equipped with the necessary skills.
Exporting American AI to the World
The United States must not only lead in AI innovation but also share its advancements with allies and partners. Exporting American AI expertise can strengthen diplomatic ties, bolster the domestic economy, and ensure that global AI development aligns with democratic values. Collaborative efforts with international partners can help address shared challenges, such as ethical considerations and regulatory frameworks for AI deployment.
The Road Ahead
As we look to the future, it’s clear that AI is poised to become a world-changing general-purpose technology. To capitalize on this opportunity, the U.S. must double down on its strengths, invest in infrastructure and R&D, and foster a skilled workforce. By uniting government, industry, and academia, America can lay the groundwork for a thriving AI-driven economy that benefits all.
At Microsoft, we are committed to being part of this journey. By working together, we can ensure that the next four years set the stage for unparalleled innovation and economic growth, securing America’s leadership in the AI age.