JAKARTA, Indonesia (AP) — Microsoft plans to invest $1.7 billion over the next four years in new cloud and artificial intelligence infrastructure in Indonesia. This is the single largest investment in his Microsoft's 29-year history in the country – Microsoft CEO Satya Nadella announced on Tuesday.
Microsoft, which operates one of the world's largest cloud computing operations, has taken a significant step toward artificial intelligence by incorporating an AI chatbot into its search engine Bing. In its earnings report on Thursday, the company said its profits rose 20% in the January-March period as it seeks to establish itself as a leader in applying artificial intelligence technology to increase workplace productivity.
“This new generation of AI is reshaping the way people live and work everywhere, including Indonesia,” Nadella said in Jakarta, the first stop on his Southeast Asia tour.
“The investments we are announcing today will span digital infrastructure, skills acquisition and developer support and will help Indonesia thrive in this new era,” he said.
Microsoft sees Southeast Asia as a growth market and a potential location for further AI product development. The rise of AI in the region is expected to have a major impact on the economic landscape. According to a study conducted by global consulting firm Kearney, AI could contribute nearly $1 trillion to Southeast Asia's GDP by 2030, of which Indonesia is expected to capture $366 billion.
The investment announced on Tuesday includes AI training for 840,000 people and support for Indonesia's growing community of technology developers.
Indonesia is home to the third largest developer community in Asia Pacific after India and China. In Indonesia, more than 3.1 million developers use his GitHub, a Microsoft-owned platform for software development, collaboration, and innovation. It is predicted that by 2026, he will be among the top 5 developer communities on GitHub worldwide.
Apple CEO Tim Cook met with Widodo on April 17 and said he would “consider” manufacturing in Indonesia.
Indonesia, under the administration of President Joko Widodo, aims to achieve the government's “Golden Indonesia 2045 Vision,” which aims for Indonesia to become one of the world's top five economic powers with a GDP of up to $9 trillion within exactly 100 years. Emphasis has been placed on the development of digital technology and the information sector. After gaining independence from Dutch colonizers.
Mr. Nadella met with Mr. Widodo at the presidential palace on Tuesday. According to Indonesian Minister of Communications and Information Technology Budi Aryeh Setiadi, during the meeting Widodo agreed to build an AI research center in Indonesia and to build a Microsoft data center based in Bali or Borneo's new capital, Nusantara. He proposed that it be built.
The CEO's regional visit will begin in Indonesia, followed by Thailand and Malaysia over the next two days.
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