Microsoft, AWS & Oracle: Why Big Tech is Investing in Japan

Microsoft, AWS & Oracle: Why Big Tech is Investing in Japan

A study commissioned by AWS on AlphaBeta shows that cloud skills and cybersecurity skills will be the top two digital skills in demand by Japanese employers by 2025. AWS has trained over 400,000 individuals in Japan in cloud skills since 2017 , providing them with in-demand cloud skills and best practices to help learners and organizations innovate in the cloud.

“For more than a decade, AWS has been committed to helping our Japanese customers access the latest cutting-edge technology, build digital solutions on highly resilient and secure cloud infrastructure, and adapt their businesses to maintain an edge in today’s complex economic environment,” said Tadao Nagasaki, president of AWS Japan. “Our investment in cloud infrastructure has generated a ripple effect across Japanese industries, including the public and government sectors. This will help more Japanese organizations with the ability to access and adopt new, emerging and transformative digital technologies such as artificial intelligence and machine learning. We are engaged and excited about the future of Japan’s digital economy.”

Microsoft is investing in hyperscale cloud computing and AI infrastructure

Microsoft also announced plans to invest in Japan over the next two years as it seeks to increase hyperscale cloud computing and AI capabilities.

The company aims to do this by expanding its existing digital skills programs with the aim of providing AI skills to more than three million people over the next three years. This follows a recent similar commitment to train millions in India in AI by 2025.

Microsoft also plans to open its first Microsoft Research Asia lab and says it is looking to deepen its cybersecurity cooperation with the Japanese government.

The US$2.9 billion commitment is Microsoft’s largest investment in Japan in its 46 years of presence in the country. With this financial boost, Microsoft will be able to provide more advanced computing resources in Japan, including the latest graphics processing units (GPUs) to accelerate AI workloads.

“We are honored to contribute to Japan and its future with our largest investment to date in technology and knowledge,” said Miki Tsusaka, president of Microsoft Japan. “In collaboration with our partners, Microsoft Japan is fully committed to supporting people and organizations in Japan to solve social problems and achieve more.”

Google Cloud invests in digital connectivity via submarine cables

Google Cloud announced a US$1 billion investment in digital connectivity with Japan, including an expansion of the Pacific Connect initiative and the delivery of two new submarine cables aimed at creating new optical routes between the continental United States and Japan in support of Google Japan’s digitalization initiative , while improving the reliability and resilience of digital connectivity between the United States, Japan, and numerous Pacific Island countries and territories.

Submarine cables can bring economic benefits and productivity to the places where they land. In Japan, for example, studies estimate that investment in Google’s network infrastructure generated an additional US$400 million in GDP over the previous decade. With increased access to digital services, more people can take advantage of skills and career development opportunities, while businesses and public sector organizations can better serve their customers and constituents.

“We are excited about the long-term benefits these latest Pacific initiatives will bring to people, our users and our customers,” Brian Quigley, vice president of global network infrastructure at Google Cloud, wrote in a release. “We will continue to share more as we continue to work with partners to reduce the digital divide in the Pacific.”

OpenAI expands in Japan, opens office in Tokyo

Meanwhile, OpenAI recently announced its first office in Asia, along with the release of a Japanese-optimized GPT-4 custom model.

The AI ​​startup said it is giving local businesses early access to a custom GPT-4 model specifically optimized for Japanese, offering improved performance in translating and summarizing Japanese text and running up to three times faster than its predecessor.

“We are committed to collaborating with the Japanese government, local businesses and research institutions to develop safe AI tools that serve Japan’s unique needs and unlock new opportunities,” the company said in a blog post. “We chose Tokyo for our first Asian office because of its global leadership in technology, culture of service and a community that embraces innovation.”

OpenAI says it works with leading businesses such as Daikin, Rakuten and TOYOTA Connected, which use ChatGPT Enterprise to automate complex business processes, support data analysis and optimize internal reporting.

“We are excited to be in Japan, which has a rich history of people and technology coming together to do more,” said Sam Altman, CEO of OpenAI. “We believe AI will accelerate work by empowering people to be more creative and productive, while providing broad value to current and new industries yet to be imagined.”

Oracle: Investment to meet growing demand for cloud computing and AI infrastructure

In April, Oracle Corporation Japan announced plans to invest more than US$8 billion over the next 10 years to meet growing demand for cloud computing and AI infrastructure in Japan. The investment will increase Oracle Cloud Infrastructure’s (OCI) footprint in Japan. In addition, to help customers and partners meet digital sovereignty requirements in Japan, Oracle will significantly expand its operations and support engineering teams with Japan-based personnel.

Oracle plans to increase local customer support for its public cloud regions in Tokyo and Osaka and its local operations teams for Oracle Alloy and OCI Dedicated Region. This will allow governments and businesses across Japan to continue to move their critical workloads to the Oracle Cloud and adopt sovereign AI solutions.

“We are dedicated to meeting our customers and partners where they are in their cloud journey,” said Toshimitsu Misawa, board member, corporate executive and president of Oracle Corporation Japan. “By increasing our cloud footprint and providing a support team for sovereign operations in Japan, we are giving our customers and partners the ability to innovate with AI and other cloud services while supporting their regulatory and sovereignty requirements.”

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