Microsoft to invest over €3 billion in AI in Germany in pitch to 'build jobs'
Microsoft said Thursday it would invest €3.2 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.
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.
READ ALSO: German manufacturers hope for AI boost in factories
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.
Where could new jobs be created?
According to DPA, the funds will primarily be channelled into Germany's most populous state of North Rhine-Westphalia, where Microsoft wants to expand its cloud region. The company is also looking to be close to major customers such as Bayer and RWE.
But Hesse will also benefit from Microsoft's investments. The Rhine/Main region is Germany's leading location for data centres due to the large DE-CIX internet node in Frankfurt.
NRW Minister President Hendrik Wüst (CDU) described Microsoft's investment as "a strong signal for Germany and a great contribution to structural change and economic growth in the Rhine region."
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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.
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.
READ ALSO: German manufacturers hope for AI boost in factories
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.
Where could new jobs be created?
According to DPA, the funds will primarily be channelled into Germany's most populous state of North Rhine-Westphalia, where Microsoft wants to expand its cloud region. The company is also looking to be close to major customers such as Bayer and RWE.
But Hesse will also benefit from Microsoft's investments. The Rhine/Main region is Germany's leading location for data centres due to the large DE-CIX internet node in Frankfurt.
NRW Minister President Hendrik Wüst (CDU) described Microsoft's investment as "a strong signal for Germany and a great contribution to structural change and economic growth in the Rhine region."
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