Amazon Web Services plans $5 billion investment in South Korea’s AI industry by 2031
According to Reuters, based on the South Korean presidential office, Amazon Web Services (AWS) plans to invest approximately $5 billion in South Korea by 2031 to establish new artificial intelligence data centers in the Asian country.
The announcement was made during AWS CEO Matt Garman’s meeting with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit.
South Korea’s push for artificial intelligence
According to Lee’s statement in the report, this investment aims to strengthen the artificial intelligence industry in South Korea, with the country aiming to become one of the top three artificial intelligence leaders in the world.
According to Garman in the report, “As AWS, we have invested and committed an additional $40 billion to 14 APEC countries and economies outside the United States from now until 2028.”
“And that $40 billion actually benefits the entire APEC economy, with an additional $45 billion in benefits to US GDP and subsectors,” he said at a business event on the sidelines of the ASEAN Summit.
In June, AWS announced a $5 billion investment in South Korea in partnership with SK Group to develop the country’s largest data center. He also revealed investment plans in Japan, Australia and Singapore.
Amazon is one of seven global companies whose executives attended the group meeting in Gyeongju, South Korea, with Lee and committed to investing a total of $9 billion over the next five years.
Layoffs at Amazon
Amazon’s latest investment comes months after Chief Executive Andy Jassy hinted that artificial intelligence would reduce its workforce, as the e-commerce giant confirmed it would cut 14,000 jobs.
“The discounts we’re sharing today are a continuation of that work to get even stronger by further reducing red tape, removing layers, and shifting resources to ensure we’re investing in our biggest bets,” Beth Galetti, Amazon’s senior vice president of human experience and technology, said in a blog post Tuesday.
On the reason for the latest layoffs, he said: “Some may ask why we are reducing our roles when the company is performing well. What we need to remember is that the world is changing rapidly. This generation of AI is the most transformative technology we have seen since the internet, allowing companies to innovate faster than ever before.”
(With input from institutions.)
