Microsoft Corp (NASDAQ:MSFT) is poised to invest US$2.9 billion in Japanese data centers after calls from Tokyo for more domestic artificial intelligence computing power.
According to Nikkei, new advanced AI semiconductor technology will be installed at two existing sites in western and eastern Japan under the plan.
A program to train some three million workers on AI will also be launched, and a new AI robotics research and development lab site set up in Tokyo.
“The competitiveness of every part of the Japanese economy [...] will depend on the adoption of AI,” Microsoft president Brad Smith told Nikkei on Monday.
“[AI is essential to] sustain productivity growth, even when a country has a declining population.”
Microsoft is set to formally unveil the plans on Tuesday as Japanese Prime Minister Fumio Kishida visits Washington.
These are also said to involve a partnership with the Japanese government to strengthen cybersecurity.
"The threat landscape for cybersecurity has become more challenging,” Smith added. “We're seeing that from China and from Russia in particular, but we're also seeing growing ransomware activity around the world."