Date:
October 03, 2024
Microsoft is planning to invest nearly $4.8 billion in Artificial Intelligence and Cloud Infrastructure in Northern Italy over the next two years.
Microsoft has been one of the most aggressive and largest investors in the Artificial Intelligence industry. After acquiring OpenAI, the firm is set to invest over $4.8 Billion over the next two years in building more AI capabilities and cloud infrastructures in Northern Italy. The company said it will become its largest AI and cloud investment in Italy to date.
The company stated that the Northern Italy region will become its biggest hub for Microsoft data centers for the Mediterranean and North African regions. Microsoft’s Vice Chair and President, Brad Smith, met Italian Prime Minister Giorgia Meloni on Wednesday to discuss the cloud investment plan.
The PM’s office also told the media that Meloni met US fund Blackrock’s Chief Larry Fink in Rome to discuss possible investments on similar lines. It said that the fund house aims to strengthen the data centers and support energy infrastructure, something crucial in the emerging AI space.
Microsoft and Blackrock also announced a fund last month worth more than $30 Billion to invest in AI-focused data centers, AI supply chains, and energy sourcing. The company said that it will first look at the US market and US partner countries as priority investment opportunities.
A rapidly rising demand for AI and cloud infrastructures in a diverse range of industries, from gaming to e-commerce, has attracted the Italian government’s support for Microsoft’s initiative. AI startups are finding it easier to find investors in their ventures, owing to the AI gold rush backed by the early mover advantage businesses can tap.
However, Microsoft-backed OpenAI has declared an open message to global investors such as Thrive Capital and Tiger Global to strictly refrain from investing in its five direct AI rival startups. The list of AI companies in Microsoft’s non-investment clause includes Anthropic and Elon Musk’s xAI. The list also includes OpenAI’s co-founder’s new company, Safe Superintelligence. The only thing that can stop these startups from reaching the efficiency, network, and energy capacity is a lack of funding as they race to build larger language models.
