Microsoft to Invest $2.2 Billion in Cloud, AI Services in Malaysia
Microsoft CEO Satya Nadella has said his company will invest $2.2 billion in next four years in Malaysia’s new cloud and AI infrastructure. It will also collaborate with the Malaysian government to develop a national AI center in the country.
In an effort to increase support for AI development locally and globally, this is Microsoft’s single greatest investment in Malaysia, according to media reports.
“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” he stated. “Our investments in digital infrastructure and skilling will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
During his visit to Indonesia on April 30 as part of his Southeast Asia tour, Nadella also revealed a $1.7 billion investment in cloud and AI services in that country. He declared on Wednesday that Thailand will be the site of Microsoft’s first regional data center.
The internet behemoth also announced in April that it was investing $2.9 billion in Japan and $1.5 billion in G42, an AI company based in Abu Dhabi.
Additionally, Microsoft promised that by 2025, 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam will receive AI training.
When Nadella met with Prime Minister Anwar Ibrahim earlier, he stated that the investment will be the main pillar supporting the government’s objective of increasing Malaysia’s AI capabilities.
Taking to the Facebook, Anwar said the new investment would help strengthen the nation’s cybersecurity capabilities, train an additional 300,000 people in AI, construct a national AI center of excellence, and foster the development of Malaysia’s developer community.
In addition to managing one of the biggest cloud computing businesses in the world, Microsoft has advanced artificial intelligence through its collaboration with OpenAI, the company behind ChatGPT.
Microsoft has since included Copilot, an AI assistant, to its Microsoft Edge browser, which has helped the company increase revenues by 20% in the first quarter.
With a population of more than 600 million, Microsoft views Southeast Asia as a developing market and a possible site for additional AI product development.
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According to a research by international consulting firm Kearney, artificial intelligence might boost Southeast Asia’s GDP by about $1 trillion by 2030. Of the total, it is anticipated that Malaysia will receive $115 billion and Indonesia $366 billion.
Microsoft said in a statement that the investment in Malaysia will expand on its inclusive economic growth vision for 2021. It stated that in addition to guaranteeing AI governance and regulatory compliance, the planned national AI center will promote AI adoption throughout important businesses and the public sector.
“Together with Microsoft, we look forward to creating more opportunities for our (small and medium-sized enterprises) and better paying jobs for our people as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey,” said Zafrul Aziz, trade minister of Malaysia.
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