Microsoft says to invest 3.2 bn euros in AI in Germany

February 16, 2024 | 10:55

(0) user say

Microsoft said Thursday it would invest 3.2 billion euros ($3.4 billion) in Germany through 2025, with the bulk going to expand the tech giant's efforts in artificial intelligence.

The investment will go towards doubling the capacity of Microsoft's "AI and data centre infrastructure", vice chair Brad Smith said in Berlin at an event with Chancellor Olaf Scholz.

Microsoft says to invest 3.2 bn euros in AI in Germany, source: freepik.com

Germany is "constantly at the forefront" of technological change, Smith said, with the country second in Europe in terms of the number of AI-based applications being created.

But Germany suffers from a relative shortage of AI skills, according to Smith, a problem seen across different sectors.

Microsoft wants to "help build out infrastructure to help the Germany economy continue its use of AI and build out the skill base to fill the jobs required", Smith said.

Microsoft is among the large tech companies to have moved fastest and furthest into the sector, investing in ChatGPT-maker OpenAI and pushing AI across products.

The bet on AI has driven a surge in revenues at the US group and pushed it past Apple as the world's biggest company by market capitalisation.

Other tech groups have also moved to expand their AI work in Europe, with Google also announcing Thursday that it would open a research hub in Paris.

Homegrown AI firms to rival the US tech companies have however been slow to get off the ground in Germany.

The head of Aleph Alpha, Germany's hope to challenge OpenAI, said at the end of last year the startup would struggle to compete with the financial backing received by US rivals.

New York Times sues OpenAI, Microsoft in copyright clash

The New York Times sued ChatGPT-maker OpenAI and Microsoft in a US court on Wednesday, alleging that the companies' powerful AI models used millions of articles for training without permission.

EU examines Microsoft investment in OpenAI

The EU, racing to regulate the fast-moving world of artificial intelligence, said Tuesday it has started a preliminary study of Microsoft's multi-billion-dollar investment in ChatGPT developer OpenAI to see if it could be a disguised merger.

Microsoft CEO defends OpenAI partnership after EU, UK probes

Microsoft CEO Satya Nadella on Tuesday defended his company's multi-billion-dollar investment in ChatGPT developer OpenAI after the EU and Britain launched probes into whether it resembles a merger.

Microsoft joins Apple in $3 trillion club

Microsoft joined Apple on Wednesday as a three trillion dollar company, as its big bet on artificial intelligence continued to impress Wall Street.

Get ready for a massive AI shift

There is no doubt 2023 was the year of AI. We are no longer just talking about AI innovation in the abstract, we are instead seeing real product-making, deployment, and productivity gains. And as 2023 has ended, I am proud to see how Microsoft empowers individuals and organisations in Vietnam by applying AI to make a real difference in every aspect of our daily life.

By AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional