Tech5: MSFT to spend $80 bln on AI data centres, DPIIT and Stride partner to support startups, and more

Ishpreet Singh Gandhi, Managing partner of Stride ventures Image: Amit Verma

Microsoft to invest $80 billion on AI data centres in 2025

Capital expenditure on artificial intelligence infrastructure is off to a roaring start in 2025. In the biggest announcement this year already, “in FY 2025, Microsoft is on track to invest approximately $80 billion to build out AI-enabled data centre”, the company’s president Brad Smith said in a blog post on January 3. Microsoft follows a July-June fiscal year.

The data centres will be used to train AI models and deploy AI and cloud-based applications around the world. More than half of this total investment will be in the US, and the rest around the world in part to combat China’s growing influence in the global south, he added. Microsoft announced last year that it was committing $35 billion to build AI and cloud infrastructure in 14 countries over a three-year period, Smith reiterated.

Foxconn tops street estimates on strong AI demand

Foxconn, the world's largest contract manufacturer of hi-tech electronics, reported a record-high revenue of T$2.13 trillion ($64.72 billion) for Q4 2024, driven by strong demand for AI servers, Reuters reports. This represents a 15.2 percent increase and exceeds analyst expectations.

The company's cloud and networking products division, including AI chip firm Nvidia, saw significant growth, while iPhone-related sales showed flat growth. December revenue reached T$654.8 billion, up 42.3 percent year-on-year. Despite this, Foxconn expects a more average performance in Q1 2025 due to the traditional off-season. Its shares rose 76 percent in 2024, outperforming Taiwan's broader market. Full earnings will be reported on March 14.

 
DPIIT and Stride Ventures partner to fund and support startups

Government of India’s Department for Promotion of Industry and Internal Trade (DPIIT) has partnered Delhi-based VC firm Stride Ventures, a venture debt specialist, to offer loans and support to startups.

The collaboration will provide financial support, strategic mentorship, and market access, aligning with India’s Make in India and Make for the World initiatives, according to a press release from the department. The partnership also aims to help startups from Tier-2 and Tier-3 cities, offering global mentorship and raising awareness of venture debt.

Focussed on sectors such as manufacturing, B2B, and cleantech, Stride Ventures will offer targeted programmes and engage in ventures such as the Bharat Grand Challenge.

Smart ring maker Circular launches next model, Ring 2, at CES

Circular unveiled its next-gen smart ring, the Ring 2, at CES 2025. Featuring ECG functionality and FDA-cleared AFib detection, the ring allows users to monitor heart health with a single-lead ECG, using an advanced PPG sensor, TechCrunch reports.

The new ring offers improved battery life (up to eight days), enhanced sensors for tracking health metrics like sleep, and a redesigned companion app for better user experience. Priced at $380, it will be available in February or March in four finishes: Gold, silver, black, and rose gold. The Ring 2 will initially launch in the US, UK, and France.

America’s biggest banks are quitting a Net-Zero Alliance

Major US banks are withdrawing from the Net-Zero Banking Alliance (NZBA), a group committed to aligning investments with net-zero emissions by 2050, Bloomberg reports. JPMorgan, the largest US bank, is expected to follow suit. This shift reflects banks' efforts to avoid growing political pressure, especially with Donald Trump’s return to the White House.

Launched in 2021, the NZBA has faced internal tension and mounting opposition from Republican lawmakers. Some states, like Texas, have even sued money managers like BlackRock for promoting climate-friendly strategies. While these banks still support decarbonisation, they prioritise client needs above climate pledges.