As part of a comprehensive initiative that also covers skills training and cyber security, Microsoft (MSFT.O) said that it would invest A$5 billion ($3.2 billion) over two years, growing its artificial intelligence (AI) and cloud computing capabilities in Australia.
The U.S. tech giant announced it will increase its processing capacity in Australia by 250%, enabling the No. 13 economy in the world to satisfy demand for cloud computing, which was anticipated to quadruple between 2022 and 2026 as AI became more commonplace.
Microsoft’s investment is essentially a charm offensive in a nation that started a public consultation on AI regulation this year. AI, which stands for artificial intelligence but is frequently used to describe fast automation, stunned the technology world in 2022 with the lifelike language program ChatGPT, which Microsoft backed.
In addition to investing $5 billion, Microsoft said it will help train 300,000 Australians in the skills necessary to “succeed in the digital economy” and expand a cyber threat information-sharing arrangement with the Australian Signals Directorate, the nation’s cyber security agency.
In a statement released by Microsoft, Australian Prime Minister Anthony Albanese remarked, “This is a major investment in the skills and workers of the future.” “We need to provide the skills to enable Australians to succeed in the jobs of the future.”
Brad Smith, vice chairman and president of Microsoft, said the budget was “a testament to our commitment to the growth and prosperity of the country in the AI era.”
The funding will “not only enable a safer and more secure digital economy, but also provide a platform to foster growth and innovation in the era of AI,” according to Microsoft’s managing director for Australia, Steven Worrall.
The corporation said it would greatly increase its processing capacity but provided no further information on using the $5 billion. It declared that it would increase the number of data centers it operates in Australia from 20 to 29.
According to a recent analysis co-authored by Microsoft, generative AI, a type of automation that adapts to new data inputs, might, if promptly implemented, boost Australia’s economy by up to A$115 billion annually by 2030.
Australian law does not specifically address artificial intelligence. However, copyright attorneys and human rights organizations have argued that the technology needs certain safeguards to prevent prejudice, copyright infringement, and privacy violations.
