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The investment, revealed during Japanese Prime Minister Fumio Kishida’s visit to the US, is Microsoft’s largest financial commitment to Japan to date 

Microsoft has unveiled plans to invest $2.9 billion over the next two years in Japan, focusing on expanding its cloud computing and artificial intelligence (AI) infrastructure.  

The commitment is part of Microsoft’s effort to support Japan’s digital transformation objectives and enhance its capabilities in AI adoption and cybersecurity. 

The investment will reportedly allow Microsoft to provide more advanced cloud computing resources in Japan, including the deployment of graphics processing units essential for AI applications.  

Exactly how much additional capacity and where this infrastructure will be located within Japan was not announced.  

In addition to infrastructure investment, Microsoft is set to invest in upskilling initiatives to train over three million people in AI technologies over the next three years. These programs will target diverse groups, including women, developers, and students, aiming to equip Japan’s workforce with key digital skills.  

The company will also establish a Research Asia Lab in Tokyo, which will focus on areas such as embodied AI and robotics, societal AI and wellbeing, and other R&D goals.  

It is hoped that the move will tackle the country’s deflation and “stimulate the economy by expanding the infrastructure, skilled talent, and security required to accelerate Japan’s digital transformation and adoption of AI”, read the press release. 

This comes just days after Microsoft announced plans to establish an AI hub in London, to advance R&D in the UK. 

“As 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,” said Fumio Kishida, Japan’s Prime Minister in a statement. 

Microsoft is far from the only company investing in Japan’s cloud infrastructure. Back in January, AWS announced its plan to invest 2.3 trillion yen ($15.24 billion) in the country’s cloud computing infrastructure by 2027. The investment is in addition to the 1.51 trillion yen ($10.20 billion) already spent on increasing cloud capacity in Japan and will go towards the expansion and strengthening of facilities in Tokyo and Osaka to meet growing customer demand.   

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