Microsoft’s $2.9B Boost for Japan’s AI and Cloud Capabilities

Microsoft announced an investment of US $2.9 billion over the next two years to increase hyper-scale cloud computing and Artificial Intelligence (AI) infrastructure in Japan’s AI. Microsoft plans to expand its digital skilling programs to provide AI skills to more than 3 million people over the next three years, open its first Microsoft Research Asia lab in Japan, and deepen its cybersecurity collaboration with the Government of Japan.

As per the official blog, these investments are aimed at supporting Japan’s key pillar to tackle deflation and stimulate the economy by expanding the infrastructure, skilled talent, and security required to accelerate Japan’s digital transformation and adoption of AI. 

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Key features of Microsoft’s $2.9 Billion Investment in Japan

• Expanding Japan’s AI and cloud infrastructure capacity: The significant enhancement in digital capacity will enable Microsoft to provide more advanced computing resources in Japan, including the latest graphics processing units (GPUs), which are crucial for speeding up AI workloads. It builds on Microsoft’s support for the Generative AI Accelerator Challenge (GENIAC), a program led by the Ministry of Economy, Trade, and Industry that helps innovative startups and established enterprises develop foundation models as a core technology of generative AI in Japan.
• Building Japan’s AI capability by training 3 million people: Microsoft will also invest in training 3 million full-time and part-time workers across Japan over the next three years, giving them the skills they need to build and work with AI technologies. This investment will be delivered through programs focused on assisting organizations and society at large, including women in general, and also with a focus on developers and students.
• Opening Japan’s first Microsoft Research Asia lab in Tokyo The new lab will have a unique focus on areas including embodied AI and robotics, societal AI and well-being, and scientific discovery that aligns with Japan’s socioeconomic priorities. To foster enhanced research collaboration, Microsoft will also provide US$10 million resource grants over the next five years to both The University of Tokyo and to the Partnership on Artificial Intelligence Research between Keio University and Carnegie Mellon University.
• Partnering to strengthen Japan’s cybersecurity defences: Microsoft will collaborate with Japan’s Cabinet Secretariat to strengthen cybersecurity resilience for the government, business, and society, as the nation enhances its cybersecurity approach under the government’s updated National Security Strategy.

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Leadership statements

• Fumio Kishida, Prime Minister of Japan, – “As economic activities in the digital space increase, the Japanese industry as a whole needs to work with global companies like Microsoft that are equipped with a set of digital infrastructure. We appreciate Microsoft’s announcement of its new investment in Japan.”
• Brad Smith, Vice Chair and President, Microsoft,t – “Today’s announcement represents Microsoft’s most significant investment in Japan since we set roots here in 1978. These investments in digital infrastructure, AI skills, cybersecurity, and AI research are essential ingredients for Japan to build a robust AI Economy.”
• Ken Saito, Minister of Economy, Trade and Industry – “We are honoured to contribute to Japan and its future with our largest investment to date, technology and knowledge. In collaboration with our partners, Microsoft Japan is fully committed to supporting the people and organizations of Japan to solve social problems and achieve more.”
• Chisa Mikami, Head of Hiroshima Office, UNITAR – “Through the collaboration between UNITAR and Microsoft, we will strive to democratize access to AI education, ensuring that knowledge is freely available to all. Together, we pave the way for advanced AI professionals, foster innovation in startups, and promote responsible AI practices across industries and sectors. With collective effort, we harness the transformative power of AI for the betterment of society.”

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