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Microsoft and Amazon plan a $5.6 billion investment in France as Macron woos tech giants.

ByYasmeeta Oon

May 14, 2024

Microsoft and Amazon plan a $5.6 billion investment in France as Macron woos tech giants.

Microsoft and Amazon have announced significant investments in France, reflecting their commitment to expanding their operations and enhancing the country’s digital infrastructure.

In a statement released Monday, Microsoft revealed its plan to invest €4 billion ($4.3 billion) to expand its cloud and AI infrastructure in France. This investment includes funding for AI training and support for the French technology sector.

Key aspects of Microsoft’s investment:

  • Introduction of up to 25,000 advanced GPUs (graphics processing units) in France by the end of 2025.
  • Training for 1 million individuals in AI skills by 2027.
  • Support for 2,500 AI startups by 2027.
  • Opening of a new data center in Mulhouse, France.

Brad Smith, President of Microsoft, emphasized the company’s dedication to fostering digital innovation and economic growth in France. “This major investment demonstrates a steadfast commitment to supporting digital innovation and economic growth in France,” Smith stated. “We are building state-of-the-art Cloud and AI infrastructure, training people with AI skills, and supporting French startups as they use our technology with confidence to grow in a fair and responsible way.”

Amazon, on the other hand, has pledged €1.2 billion to expand its operations in France. This commitment includes the creation of more than 3,000 jobs, adding to the 2,000 new jobs already announced for 2024.

Frederic Duval, Amazon’s country manager for France, highlighted the benefits of this investment. “The expansion of our logistics network supports local economic development, creates quality jobs, and allows us to reduce the carbon footprint of our deliveries while improving the overall customer experience,” Duval said.

CompanyInvestment AmountKey Initiatives
Microsoft€4 billion25,000 GPUs, 1M AI-trained individuals, 2,500 AI startups, new data center in Mulhouse
Amazon€1.2 billion3,000 new jobs, expansion of logistics network

Highlights of the Investment:

  • Microsoft:
    • €4 billion investment in cloud and AI infrastructure.
    • Training for 1 million people in AI skills by 2027.
    • Support for 2,500 AI startups.
    • Establishment of a new data center in Mulhouse.
  • Amazon:
    • €1.2 billion investment.
    • Creation of over 3,000 jobs.
    • Expansion of logistics network to support local economic development.

The announcements were made during the “Choose France” summit, an annual event aimed at attracting foreign investment to France. This year, the summit saw a record €15 billion in investment commitments from various international companies.

French President Emmanuel Macron has been actively promoting France as a hub for artificial intelligence (AI). Paris has already established itself as a significant center for AI research and development, hosting Facebook’s AI lab, FAIR, since 2015. At the VivaTech technology fair in Paris last year, Macron announced an additional €500 million in funding to foster new AI “champions,” supplementing the government’s previous commitment of €1.5 billion toward AI by 2022.

Microsoft’s investment in France also coincides with its efforts to address concerns from French officials regarding its investment in AI startup Mistral. The tech giant recently invested €15 million in Mistral, securing a stake in the company and integrating its large language model into Microsoft’s Azure cloud computing platform.

Despite concerns about potential competition issues, Microsoft has reassured that Mistral remains an independent entity. The partnership, they clarified, is a minority equity investment and a commercial relationship, not a merger. The UK’s competition regulator is currently seeking feedback on this deal.

The combined commitments from Microsoft and Amazon represent a substantial boost to France’s digital infrastructure and AI capabilities. With these investments, France is poised to further strengthen its position as a leading player in the global AI and technology landscape.

Overall Impact of Investments:

  • Enhanced AI and cloud infrastructure.
  • Significant job creation and economic development.
  • Support for startups and innovation in the technology sector.
  • Strengthened position as an AI research and development hub.

These strategic investments by Microsoft and Amazon not only underscore their confidence in the French market but also align with France’s broader goals of fostering innovation, enhancing digital skills, and driving economic growth through technology.


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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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