Microsoft is planning to halt hiring in part of its consulting business in the U.S. in a bid to cut costs, CNBC reported on Tuesday, citing an internal memo. The tech giant is looking to manage overall expenses as it looks to continue investments in its artificial intelligence (AI) efforts.

Microsoft has announced a hiring freeze, which is expected to impact its consulting business in the U.S. as part of its broader plans to cut costs.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

Microsoft Corp. plans to spend $80 billion this fiscal year building out data centers, underscoring the intense capital requirements of artificial intelligence.

President Joe Biden this week issued one of his last executive orders, addressing the race to build domestic data centers and clean energy plants in order to retain America’s leadership in artificial intelligence.