Microsoft Decides to Invest $2.9 Billion in Japan to Develop AI and Cloud Industry

• Microsoft announced that it will be investing $2.9 billion in Japan over the next 2 years - its biggest investment in Japan in the last 46 years
• The money will be used to train over 3 million people and build the Microsoft Research Asia lab in Tokyo
• A separate $10 million investment will also be made as resource grants

On Tuesday, Microsoft announced that it will be investing a massive $2.9 billion over a period of 2 years in Japan for the development of AI and Cloud infrastructure. The company has operated in Japan for the last 46 years and this is its biggest investment so far.

Here's how the investment will be used:

#1 Training Over 3 Million PeopleBoth full-time and part-time workers can take up the programs if they want to learn how to work with AI.

While we don't know if there's a set requirement for those who can access these programs, Microsoft said that it will be primarily focused on women, students, and developers.

AI-centric programs will also be available in vocational high schools and a separate program will be available for startups.

#2 Collaborations

Microsoft is also collaborating with the United Nations Institute for Training and Research to provide free and widely accessible content on AI and digital skills.

#3 Research

A part of that investment will also go into setting up the first Microsoft Research Asia lab in Tokyo - a platform for research on AI and robotics. This organization will be responsible for making AI-based innovations that align with Japan's socio-economic goals.

#4 Resource Grants

Apart from the $2.9 billion, a separate investment of $10 million will be made in resource grants over the next 5 years to The University of Tokyo and to the Partnership on Artificial Intelligence Research between Keio University and Carnegie Mellon University.

#5 Better Relationships

Creating a better relationship with the Japanese government in order to deal with cybersecurity issues more effectively is also on the agenda.

Why Is Microsoft Making This Huge Investment?

After the launch of ChatGPT at the end of 2022, the entire world was catapulted into an era of AI boom and the technical industry went through a massive transformation.

To keep up with the advancements and growing demand for AI, many companies have been expanding their infrastructure. For example:

• Amazon is investing $10 billion in Mississippi and $5.3 billion in Saudi Arabia to build data centers in those regions.
• Google is investing more than $1 billion in building a data center just outside London.

So, naturally, Microsoft has to keep up with its competitors. This investment is going to be equally beneficial for Japan.

Microsoft will help stimulate Japan's economy by enhancing infrastructure and nurturing talent. It will also protect the country from the effects of deflation and provide them the much-needed support for a digital transformation.

Read more: Microsoft chooses London as the new office for Microsoft AI'

Japan's Response To Microsoft's InvestmentsAs economic activities in the digital space increase, it is important for the Japanese industry as a whole to work with global companies like Microsoft that are equipped with a set of digital infrastructure.Fumio Kishida, Japanese Prime Minister

He also expressed gratitude for all the initiatives Microsoft has taken before this for the advancement of generative AI in Japan and said they are looking forward to the collaboration.

Currently, the Japanese Prime Minister is visiting the United States where he was joined by Microsoft Vice Chair and President, Brad Smith, and Microsoft Japan President, Miki Tsusaka.

Whether this meeting has something to do with the announcement is unknown. However, Tsusaka also made a statement expressing his honor to be able to collaborate with Japan and contribute to its development with this investment.

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