According to the announcement, Microsoft will invest nearly $3.2 billion in Australia’s AI ecosystem over the next two years, with the aim of expanding cloud computing and AI infrastructure.
Currently, Microsoft operates 20 data centers in Australia. However, with this new investment, the company is planning to build an additional 9 facilities. Ultimately, Microsoft will also collaborate with the state of New South Wales to establish the Microsoft Data Center Academy.
“This is the largest investment in Microsoft’s 40-year history in Australia. It is also evidence of our commitment to the country’s growth and prosperity in the AI era,” said Microsoft President Brad Smith.
Earlier in September 2023, Australia’s largest retirement fund, AustralianSuper, invested $1.6 billion in the Vantage Data Center. These data centers support the necessary infrastructure for training and storing AI models.
Also in September, Iliad Group, France’s largest telecommunications conglomerate, invested $105 million to establish a research lab in Paris focused on AI. In July 2023, Japanese venture capital giant SoftBank allocated $100 million to establish a joint venture with robot warehousing company Symbotic.
Furthermore, the world’s most valuable chipmaker, Nvidia, is planning to establish AI manufacturing plants in collaboration with electronics manufacturer Foxconn.
Lastly, OpenAI, the parent company of ChatGPT, is aiming for an $86 billion valuation. If achieved, OpenAI will have tripled in value in the past six months.
It’s evident that companies are racing to invest in creative AI chatbot firms, AI infrastructure, and cloud computing. Statista estimates that the global artificial intelligence market will reach nearly $2 trillion by the end of this decade.