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Macron attracts tech giants as Microsoft and Amazon invest $5.6 billion in France

On Monday, Microsoft announced its commitment of 4 billion euros ($4.3 billion) to bolster its cloud and AI infrastructure in France. This investment also includes support for AI education and the advancement of France’s technology sector.

Microsoft and Amazon to invest $5.6 billion into France
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The company announced its intention to bring up to 25,000 cutting-edge GPUs, or graphics processing units, to France by the end of 2025. Additionally, Microsoft plans to train one million individuals and support 2,500 AI startups by 2027.

The announcement was made during the “Choose France” summit, an event dedicated to attracting foreign investment to France.

“This significant investment underscores our unwavering dedication to fostering digital innovation and economic development in France,” stated Brad Smith, President of Microsoft, in a Monday press release.

“We are establishing state-of-the-art Cloud and AI infrastructure, providing AI education and training, and assisting French startups in utilizing our technology responsibly and effectively for growth.”

As part of its investment, Microsoft will inaugurate a new data center in the French city of Mulhouse.

Meanwhile, Amazon has pledged to invest 1.2 billion euros in France.

These funds will be directed towards generating over 3,000 new jobs in France, in addition to the 2,000 positions already announced for 2024, and expanding Amazon’s presence in the country, according to Frederic Duval, Amazon’s country manager.

“The expansion of our logistical network promotes local economic advancement, creates high-quality employment opportunities, and enables us to enhance the sustainability of our deliveries while enhancing overall customer satisfaction,” remarked Duval in a Monday statement.

Combined, Microsoft and Amazon’s commitments to France amount to $5.6 billion in funding. France reportedly secured a record 15 billion euros in investment pledges from foreign firms during the annual “Choose France” summit on Monday.

French President Emmanuel Macron has been actively promoting France as a hub for artificial intelligence. Paris already serves as a major center for AI research and development, with Facebook establishing one of its primary AI laboratories, FAIR, there in 2015.

Last year, at the VivaTech technology fair in Paris, Macron announced a 500 million euro ($540 million) allocation for fostering new AI “champions,” in addition to previous government commitments, including a pledge to inject 1.5 billion euros into AI before 2022.

Microsoft is also engaging in its own charm offensive with its multi-billion euro investment commitment to France, at a time when French officials have voiced concerns about the company’s investment in AI startup Mistral.

Microsoft recently invested 15 million euros in Mistral. The deal involved Microsoft acquiring a stake in Mistral, which then integrated its large language model into Microsoft’s Azure cloud computing platform.

Microsoft has pushed back against competition concerns related to its investment in Mistral, asserting that the company remains independent and that their partnership constitutes a minority equity investment and a commercial relationship, not a merger. Britain’s competition regulator is currently soliciting feedback on the deal.

Read More: Microsoft’s latest AI investment is focused on the Middle East

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