Microsoft’s investment spree extends beyond France. The firm recently announced €3.2 billion in Germany and $1.5 billion in the Abu Dhabi’s AI company G42.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
The “Choose France” summit, organized by President Macron, has generated significant momentum. Two major tech giants, Microsoft and Amazon, have pledged substantial financial investment in France. This combined €5.5 billion ($6 billion) commitment shows a growing trust in the potential of France’s growing technology sector, particularly in the areas of cloud computing and artificial intelligence (AI).
Microsoft leads the charge with €4 billion ($4.3 billion) investment in order to build the cloud and artificial intelligence (AI) infrastructure in the France. The move aligns with the company’s global strategy to expand Azure cloud and AI tools.
“France has a thriving AI ecosystem, and we’re committed to supporting its growth,” said the Microsoft. By 2027, Microsoft plans to train one million people in AI skills and support 2,500 startups. In 2024, it partnered with and invested €15 million in Mistral AI, a Parisian startup competing with OpenAI.
France has emerged as a prominent player in the global AI race. The government has fostered this growth by allocating national funds and encouraging investments in AI companies like Mistral and Kyutai, both established in 2023. This focus on AI aligns with the growing popularity of generative AI (GenAI), which requires substantial cloud computing power.
Amazon invested €1.2 billion ($1.3 billion) on cloud infrastructure and logistics. AWS will expand its cloud infrastructure in Paris to support the growing GenAI sector. They also plan to enhance their logistics network in the Auvergne-Rhône-Alpes region, aiming to improve delivery speeds and reduce their carbon footprint.
Job creation is a key aspect of these investments. Amazon will create over 3,000 positions in France, adding to the existing 22,000 employees across their cloud and online retail businesses. Frédéric Duval, the country manager at Amazon France, stated that these new jobs are in addition to the 2,000 positions announced for 2024, showing a long-term commitment to the French market.
Microsoft’s investment spree extends beyond France. The firm recently announced €3.2 billion in Germany and $1.5 billion in the Abu Dhabi’s AI company G42. This aggressive expansion aims to solidify their leadership in cloud and AI. However, their cloud dominance attracts antitrust scrutiny. Their substantial $10 billion+ investment in OpenAI raises concerns about anti-competitive practices.
Microsoft and Amazon’s combined €5.5 billion investment in France boosts the country’s AI sector, creates jobs, and strengthens its cloud infrastructure. For these tech giants, France provides an innovative and expanding market. This strategic partnership between France and these tech leaders can shape Europe’s technological future.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
