Microsoft announces investment in AI worth billions in Europe

Microsoft is using artificial intelligence to conduct a global charm offensive. The IT behemoth has announced plans to spend over $5.6 billion on artificial intelligence across Europe.

Microsoft is launching a global charm offensive with artificial intelligence. The tech giant recently pledged to invest almost $5.6 billion in artificial intelligence throughout Europe.

Microsoft announced late on Monday that it intends to invest $2.1 billion in cloud infrastructure and artificial intelligence in Spain by the end of 2025, a double investment. This is in addition to a pledge announced just last week to invest over $3.5 billion in AI in Germany over the same time frame.

That was a helpful explanation because it appeared that the Spanish announcement's main focus was on data center construction, which a cynic may argue had more to do with satisfying EU standards than enabling AI. It demands that US tech behemoths cease keeping customer data from Europe in other locations.

But in order to maintain the current technological boom, Microsoft and competitors like Alphabet and Google are also eager to see national governments use their AI capabilities for cybersecurity and administration. Given the size of the investment, European lawmakers who are supporting their own domestic AI start-ups, like France's Mistral or Germany's Aleph Alpha, may want to reconsider.

In other news, chip manufacturer GlobalFoundries saw a rise on Monday on the announcement that it would get $1.5 billion to support domestic chip manufacturing through the U.S. CHIPS and Science Act.