On Thursday (February 15) local time, Microsoft announced that it will invest 3.2 billion euros ($34.4) in Germany over the next two years, mainly for the development of artificial intelligence (AI). Microsoft President Brad Smith announced the decision at an event in Berlin on Thursday, saying it was Microsoft's largest investment in Germany in the past 40 years and was aimed at doubling the capacity of the company's AI and data center infrastructure in Germany, as well as cultivating talent in the AI field.
"We do this because we have confidence in Germany," Smith said, adding that Germany has always been at the forefront of technological change.
Smith noted that Germany ranks second in Europe for creating AI-based applications and that AI is being adopted by more and more German companies, but ranks only 11th in Europe for AI skills.
When asked about red tape and regulations, Smith said he wanted to see regulations that were balanced, practical and thoughtful.
He said: "The issues raised by the Germans are really the voice of people around the world, and if we can meet German standards, we can meet the needs of the world."
Marianne Janik, head of Microsoft Germany, declined to reveal details about investment locations but said the company would focus on the western Rhineland and near Frankfurt's banking centre.
Microsoft's market value recently exceeded US$3 trillion, surpassing Apple and becoming the world's most valuable listed company. This is mainly due to Microsoft's bet on the field of AI.
German Chancellor Scholz said that Microsoft's investment represents trust in Germany, which has also recently made large investments in batteries, chips and pharmaceuticals.
Scholz acknowledged that Germany is feeling the impact of slowing global economic growth. "We are waiting for the moment when economic growth picks up again, when everything will be ready so that companies investing here and investment companies from Germany are ready," he said.
The German Chamber of Industry and Commerce warned earlier that the German economy will shrink by 0.5% this year. This will be the second consecutive year that the German economy has fallen into recession and the most serious recession in 20 years.