Microsoft to Invest €3.2 Billion in Germany to Boost AI Development
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On Thursday (February 15), Microsoft announced plans to invest €3.2 billion (approximately $34.4 billion) in Germany over the next two years, primarily to advance artificial intelligence (AI) development.
Microsoft President Brad Smith revealed the decision during an event in Berlin, stating that this marks the company's largest investment in Germany in the past 40 years. The funds aim to double Microsoft's AI and data center infrastructure capacity in Germany and cultivate talent in the AI field.
"We are doing this because we have confidence in Germany," Smith said, adding that Germany has consistently been at the forefront of technological innovation.
Smith noted that Germany ranks second in Europe for creating AI-based applications, with AI adoption growing rapidly among German businesses. However, Germany ranks only 11th in Europe for AI skills.
When asked about bureaucratic and regulatory challenges, Smith expressed hope for balanced, practical, and thoughtful regulations.
"The questions raised by Germans reflect global concerns. If we can meet Germany's standards, we can meet the world's needs," he said.
Marianne Janik, head of Microsoft Germany, declined to disclose specific investment locations but mentioned the company is focusing on areas near the Rhineland region and Frankfurt's banking hub. Microsoft's market value has recently surpassed $3 trillion, overtaking Apple to become the world's most valuable listed company, primarily due to its strategic investments in the AI field.
German Chancellor Olaf Scholz stated that Microsoft's investment represents trust in Germany, which has recently made significant investments in batteries, chips, and pharmaceuticals.
Scholz acknowledged that Germany is feeling the impact of the global economic slowdown. He said, "We are waiting for the moment when economic growth picks up again, and everything will be ready for companies investing here and German investment firms to prepare."
The German Chamber of Commerce and Industry earlier warned that the German economy would shrink by 0.5% this year, marking the second consecutive year of recession and the most severe downturn in two decades.