AWS To Fund USD 15 Billion To Expand Cloud Computing in Japan By CIOTechOutlook Team

AWS To Fund USD 15 Billion To Expand Cloud Computing in Japan

CIOTechOutlook Team | Friday, 19 January 2024, 08:35 IST

Amazon Web Services (AWS) announced proposes to invest 2.26 trillion yen ($15.24 billion) in Japan by 2027 to enhance the cloud computing infrastructure that serves as the foundation for artificial intelligence (AI) services.

The Amazon.com unit is spending to expand facilities in the metropolises of Tokyo and Osaka to meet growing customer demand. That comes on top of 1.51 trillion yen spent from 2011 to 2022 to build up cloud capacity in Japan, AWS said. The company offers generative AI services to Japanese corporate customers including Asahi Group, Marubeni and Nomura Holdings, it said, as per reuters.

The investment is made at a time when Japan's business community and government are racing to advance AI. In order to talk about AI infrastructure and legislation, Prime Minister Fumio Kishida met with the executives of ChatGPT inventor OpenAI and cutting-edge chipmaker Nvidia in the previous year.

Amazon is a multinational technology business based in the United States that specializes in digital streaming, cloud computing, e-commerce, online advertising, and artificial intelligence. Along with Apple, Microsoft, Facebook's parent firm Meta, Alphabet (the parent company of Google), and Apple, it is regarded as one of the Big Five American technological giants.

Thanks to its "aggressive" reinvestment of profits into capital expenditures and technological innovation, the company has gained a reputation for upending well-established industries. By revenue and market share, as of 2023, it is the biggest online retailer and marketplace, smart speaker supplier, cloud computing service provider via AWS, live-streaming provider via Twitch, and Internet firm globally.