US tech giant claims $25b stake in Australian AI future
Microsoft will make one of the biggest investments in Australia’s artificial intelligence industry, pledging to spend $25 billion over three years to strengthen data centres, job training and cybersecurity defences.
The company’s chief executive, Satya Nadella, announced the big budget commitment at an event in Sydney on Thursday and appeared alongside Prime Minister Anthony Albanese to defend Australia’s innovation.
The cash injection will include spending on data centers, AI skills training for three million employees and cybersecurity collaboration with more federal government departments, including Internal Affairs.
This comes almost a year after Amazon pledged $20 billion to build AI talent and data centers in Australia by 2029, and a month after reports that Google was reconsidering $20 billion in local investment due to tax concerns.
Mr Nadella said the investment would help Australians seize the opportunity to build AI tools and grow businesses, ensuring the technology could be used across multiple sectors.
“Australia has a tremendous opportunity to transform AI into real economic growth and societal benefit,” he said.
”That’s why we’re making our biggest investment to date in Australia; “We are committing A$25 billion to expand AI and cloud capacity, strengthen cybersecurity and expand access to digital skills across the country.”
Microsoft has pledged $5 billion to expand the number of data centers in Australia to 29 and train one million employees in AI skills by 2023.
Mr Albanese said the greater investment would expand the reach of AI and help more Australians access the technology.
”We want to ensure that all Australians benefit from artificial intelligence,” he said.
”Our National AI Plan is all about protecting Australians from risk while seizing the economic opportunities of this transformative technology.”
Microsoft’s $25 billion commitment will expand its AI supercomputing and cloud facilities in Australia, but the company did not detail how many data centers it would build or where it would build them.
The company will also expand its cybersecurity services at the Australian Signals Directorate to other departments, including Home Affairs, and offer AI training to an additional three million employees.
Data Centers Australia CEO Belinda Dennett said this major spend should be taken as a vote of confidence in Australia as an AI investment hub.
“This investment in new digital infrastructure offers Australia the opportunity to benefit from and lead the most profound technological change we have ever seen,” he said.
”It will enable digital services for Australians and capture more of the AI value chain locally, supporting high-skilled jobs and playing a key role in the energy transition.”
Australia could become the Asia-Pacific digital infrastructure hub but will need $190 billion in investment to increase computing capacity from 1.5 gigawatts to five gigawatts by 2030, according to a recent McKinsey report.
The reporter traveled to Sydney as a guest of Microsoft.
