Microsoft invests $2.9B to strengthen AI and cloud infrastructure in Japan

  • Microsoft Corporation has unveiled plans to invest approximately $2.9 billion in Japan over the next two years, primarily aimed at strengthening the country’s AI and cloud infrastructure.
  • This initiative includes a comprehensive reskilling program targeting 3 million individuals, establishment of Microsoft’s first research centre in Japan, and enhanced collaboration with the Japanese government to bolster cybersecurity efforts.
  • The investment underscores Microsoft’s commitment to advancing Japan’s digital transformation and economic revitalisation through innovative technology and strategic partnerships.

Microsoft Corporation (hereinafter referred to as Microsoft) announced its commitment to invest approximately 440 billion yen (approximately 2.9 billion USD) over the next two years to strengthen AI and cloud infrastructure in Japan. Additionally, in an effort to enhance AI utilisation in Japanese society, Microsoft will provide reskilling opportunities for up to 3 million people, including non-regular employees, over the next three years. Furthermore, Microsoft will establish its first research centre in Japan and enhance collaboration with the Japanese government in the field of cybersecurity.

The initiatives announced today target the enhancement of AI and cloud infrastructure, talent development, and security, all of which are essential elements to accelerate Japan’s digital transformation (DX) and AI utilisation, thereby contributing to the revitalisation of the Japanese economy. The announcement was made during Prime Minister Fumio Kishida’s official visit to the United States, with Microsoft’s Vice Chairman and President, Brad Smith, and Tsuzaka Miki, President and CEO of Microsoft Japan, in attendance.

Strengthening AI and cloud infrastructure in Japan

Microsoft established its first overseas business base in Japan in 1978. Over nearly half a century of history between Japan and Microsoft, the 440 billion yen investment represents a substantial doubling of our investment commitment for AI and cloud infrastructure expansion, making it the largest investment of its kind.

This investment will significantly enhance our infrastructure capabilities, providing Japan with advanced computing resources, including cutting-edge graphics processing units (GPUs) essential for accelerating AI workloads. The Ministry of Economy, Trade and Industry is promoting the “Generative AI Accelerator Challenge (GENIAC)” project to strengthen the development of generative AI for innovative startup companies and large enterprises. Microsoft is cooperating with this project to continue contributing to the promotion of AI and digital technology utilisation in Japan.

Upskilling for AI utilisation through reskilling of 3 million people

Microsoft today announced that it will make its largest investment since it began operations in Japan in 1978. Comprehensive measures including digital infrastructure, AI technology, cybersecurity, and AI research will enhance Japan’s digital competitiveness, and I believe this will be an important step toward achieving solid economic growth-led growth.

Brad Smith, Vice President and President of Microsoft

Over the next three years, Microsoft will provide opportunities for up to 3 million people, including non-regular employees, to build and effectively utilise AI. This initiative targets developers, students, and individuals from organisations of all sizes who desire to acquire skills and will be implemented through reskilling programs and existing training programs provided by Microsoft.

As part of this effort, Microsoft will implement the “Code; Without Barriers” program for women in Japan for the first time. This program has supported numerous women worldwide who aspire to employment in roles utilising AI skills, and similar effects are expected in Japan. Additionally, in collaboration with the United Nations Institute for Training and Research (UNITAR), Microsoft will offer a wide range of training content covering AI and cybersecurity.

Support for the development of advanced AI technologists will continue through the provision of training programs for developers and technology companies, expansion of reference architectures, and ongoing developer support through “GitHub Copilot.” The “Microsoft for Startups Founders Hub” will provide resources to startup companies, while support for advanced programming education in technical high schools will be continued to cultivate future AI talent.

Furthermore, Microsoft will provide programs for the introduction and utilisation of AI tools to companies of all sizes, as well as to municipalities such as the Tokyo Metropolitan Government and other public institutions. Microsoft will support the establishment of rules to ensure strict data management and security, enabling the safe and responsible use of organisational data through “responsible AI.”

Brad Smith, Vice President and President of Microsoft, comments:”Microsoft today announced that it will make its largest investment since it began operations in Japan in 1978. Comprehensive measures including digital infrastructure, AI technology, cybersecurity, and AI research will enhance Japan’s digital competitiveness, and I believe this will be an important step toward achieving solid economic growth-led growth.”

Establishment of Microsoft Research’s first Japan research centre in Tokyo

Microsoft Research Asia, Microsoft’s research division, will establish a new research center in Tokyo.

The newly established research centre will focus on areas contributing to the resolution of social and economic challenges facing Japan, including Embodied AI and Robotics, Societal AI and Well-being, and scientific exploration. This new centre opening reflects our long-term commitment to Japan and our strong belief in Japan’s potential to lead the world in innovation.

Microsoft Research (MSR) pursues advancements in fundamental computer science and bold ideas and technological breakthroughs in AI research. Microsoft Research Asia, a significant base for MSR in the Asia-Pacific region, has been collaborating with Japanese universities and research institutions for over 20 years, contributing to interdisciplinary research and talent development.

To accelerate further research collaboration, Microsoft will provide approximately 1.5 billion yen (approximately 10 million USD) in resources each to partnerships with Keio University and Carnegie Mellon University for AI research over the next five years.

Enhanced collaboration with the Japanese government in cybersecurity

Based on the revised National Security Strategy of the Japanese government in December 2022, Microsoft will strengthen collaboration with the Cabinet Secretariat in the field of cybersecurity to enhance protection against cyberattacks on government, corporate, and citizen lives.

Building on the existing services provided by Microsoft to protect numerous Japanese companies and organisations, we will further enhance collaboration with the Japanese government by leveraging our expertise and advanced cloud and AI security services. We will focus on strengthening information sharing, talent development, and providing technical solutions, working together to address cybersecurity threats.

About Microsoft Japan

Microsoft Japan, a subsidiary of Microsoft Corporation, has been a pioneering force in the technological landscape of Japan for over four decades. Established in 1978 as the first business base outside the United States, Microsoft Japan has played a pivotal role in driving digital transformation across various sectors of the Japanese economy. With a commitment to innovation and collaboration, Microsoft Japan continues to empower businesses, individuals, and communities with cutting-edge technologies, including artificial intelligence, cloud computing, and cybersecurity solutions. Through strategic investments, research initiatives, and partnerships, Microsoft Japan remains dedicated to advancing Japan’s digital future and contributing to its economic growth and societal well-being.

Chloe-Chen

Chloe Chen

Chloe Chen is a junior writer at BTW Media. She graduated from the London School of Economics and Political Science (LSE) and had various working experiences in the finance and fintech industry. Send tips to c.chen@btw.media.

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