Microsoft Plans to Invest US$2.9 Billion in Cloud Computing and Artificial Intelligence in Japan

Microsoft Corporation, one of the largest IT companies, announced that it will expand its hyperscale cloud computing and artificial intelligence infrastructure in Japan by spending US$2.9 billion over the next two years. Along with opening its first Microsoft Research Asia lab in Japan and strengthening its cybersecurity partnership with the Japanese government, it will also extend its digital skills initiatives, aiming to provide AI skills to over 3 million people over the course of the next three years. ​

Through increasing the infrastructure, skilled labor, and security needed to hasten Japan's digital transformation and AI adoption, these investments seek to help the country's main economic strategy of combating deflation and boosting GDP. The announcement was made in conjunction with Microsoft Vice Chair and President Brad Smith, as well as Microsoft Japan President Miki Tsusaka, during Japanese Prime Minister Fumio Kishida's official visit to the United States.

​With the US$2.9 billion commitment, Microsoft is making its largest ever investment in Japan, where it has its first international office, in its 46-year history. In practice, it doubles the company's current investment to spread cloud computing and artificial intelligence across Japan.
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Microsoft will be able to offer more sophisticated computing resources in Japan, such as the newest graphics processing units (GPUs), which are essential for accelerating AI tasks, because of this major increase in digital capacity. It expands on Microsoft's support of the Generative AI Accelerator Challenge (GENIAC), a Ministry of Economy, Trade, and Industry program that assists creative startups and well-established businesses in creating foundation models, which are the fundamental technology of generative AI in Japan. 

Over the next three years, Microsoft plans to train 3 million full-time and part-time employees in Japan, equipping them with the knowledge and abilities needed to develop and use AI technology. This investment will be made through initiatives that support groups and society as a whole, with a particular emphasis on women and students as well as developers.

With the inauguration of a lab in Tokyo, Microsoft Research Asia is expanding its leadership in research throughout the Asia-Pacific region. Microsoft Research is a branch of the company that builds on a history of groundbreaking advancements in computer science to pursue innovative concepts and technological developments in artificial intelligence. Microsoft Research Asia, the company's core research division for the Asia-Pacific area, has been working with Japanese universities for more than 20 years. These partnerships have been crucial in advancing interdisciplinary research and developing talent.

​As Japan improves its cybersecurity approach under the government's new National Security Strategy, Microsoft will work with the Cabinet Secretariat of Japan to build cybersecurity resilience for the government, business, and society.

The partnership will expand on the daily services Microsoft offers to thousands of Japanese firms in terms of security. As part of collaborative efforts to address cybersecurity risks, Microsoft will provide its knowledge and cutting-edge cloud and AI-driven security services. It will center on topics including information sharing, talent development, and technological solutions.