Microsoft has unveiled plans to invest US$2.9 billion (S$3.9 billion) to enhance AI and cloud infrastructure capabilities in Japan.
The company said this investments will support Japan to tackle deflation and stimulate the economy by expanding the infrastructure, skilled talent, and security required to accelerate its digital transformation and AI adoption.
It is also Microsoft's single largest investment in its long venture history into Japan.
Microsoft said it will provide more advanced computing resources in Japan, including the latest graphics processing units (GPUs), for speeding up AI workloads.
It builds on Microsoft’s support for the Generative AI Accelerator Challenge (GENIAC), a program led by the Japan's Ministry of Economy, Trade and Industry which helps innovative startups and established enterprises develop foundation models.
Japan’s Cabinet Secretariat will work with Microsoft to strengthen cybersecurity resilience for the government and businesses under its updated National Security Strategy.
This aims to build on technology services to protect Japanese organisations and focus on areas such as information sharing, talent development, and technology solutions to tackle cybersecurity threats.
Microsoft will further establish a research lab in Tokyo to enhance research in embodied AI and robotics.
The company has also announced US$10 million (S$13.5 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.
It is also investing in training 3 million full-time and part-time workers across Japan over the next three years to support the widespread adoption and application of AI tools.
University of Tokyo's president Teruo Fujii said the collaboration would further advance their research community and spearhead the development of human resources.
Recently, Google has also announced US$1 billion (S$1.35 billion) investment to improve digital connectivity between Japan and the US through two new subsea cables.
The company would also fund the construction of an interlink cable connecting Hawaii, the Commonwealth of the Northern Mariana Islands (CNMI) and Guam.
The tech giant said it would work in collaboration with Japanese-based companies including KDDI, Arteria Networks, Philippines-based Citadel Pacific and the CNMI – to improve the digital connectivity in the region.
