Microsoft Will Invest IDR 50.7 Trillion For AI Development And Cloud Computing In Australia

Australian Prime Minister Anthony Albanese (photo: Twitter @AlboMP)

The US technology company, Microsoft, announced its plans to spend 5 billion Australian dollars (approximately IDR 50.7 trillion) in the next two years to expand artificial intelligence (AI) capabilities and cloud computing in Australia. This is done, as part of an effort that includes cyber skills and security training.

The tech giant said it would increase its computing capacity in Australia by 250%, allowing the world's number 13 economies to meet cloud computing demand - a separate network data storage practice - which is expected to double from 2022 to 2026 in line with the growing use of AI.

This spending is a charm effort by Microsoft in a country that started public consultations this year over AI regulation, which stands for artificial intelligence but is often used to describe fast automation, since the language program similar to real-life from Microsoft-backed OpenAI, ChatGPT, shocked the world of technology in 2022.

Microsoft says that in addition to the 5 billion Australian dollars, it will support the training of 300,000 Australians in the skills needed to "success in the digital economy" and expand its cyber threat information sharing agreement with state cybersecurity agency, the Australian Signals Directorate.

"This is a huge investment in future skills and workers," Australian Prime Minister Anthony Albanese said in a statement issued by Microsoft. "We need to provide skills to enable Australians to succeed in future work."

Microsoft's Vice Chairman and President, Brad Smith, said the spending plan was "a testament to Microsoft's commitment to the country's growth and prosperity in the AI era".

Microsoft's Director of Management for Australia, Steven Worrall, said the spending "will not only enable a more secure and secure digital economy, but also provide a platform to drive growth and innovation in the AI era".

The company did not offer details on how they would spend $5 billion apart from stating that it would significantly increase their computing capacity. They said they would expand the footprint of their data center in Australia from 20 locations to 29.

A recent report, co-authored by Microsoft, says that a generative AI, a form of automation adapting to new data inputs, could contribute up to USD 115 billion per year to the Australian economy by 2030 if adopted quickly.

Australia does not yet have special regulations for AI, but copyright attorneys and human rights groups have said that this technology should have some restrictions to protect against bias, copyright infringement, and privacy violations.