Microsoft Corp. announced its next significant investment in artificial intelligence technology, stating that it will create cloud and AI infrastructure in France for €4 billion ($4.3 billion). On Monday, Amazon said that it will establish over 3,000 permanent positions in France and invest over 1.2 billion euros ($1.3 billion) in the company's activities.

Highlights:

• Microsoft invests €4 billion in AI and cloud infrastructure in France.
• Amazon creates 3,000 permanent jobs and invests €1.2 billion in French infrastructure.
• France aims to become a leading AI hub with significant investments from tech giants.

According to a statement, Microsoft hopes to assist 2,500 companies and train one million workers in the European nation by 2027. Microsoft said earlier this year that it was partnering with and investing €15 million in Mistral AI, a Parisian firm that is in competition with OpenAI. As part of the nation's yearly "Choose France" event, which gets underway on Monday, the French presidency had announced on Sunday that Amazon and other businesses, including GSK and Accenture, will make announcements worth billions of dollars.

France has made AI development a top priority, supporting AI research nonprofits Kyutai and Mistral, both founded last year, with funding from national funds and local billionaires. Microsoft's announcement is a part of President Emmanuel Macron's "Choose France" conference, which intends to draw in international businesses and establish France as the European Union's financial center. 

An additional US digital behemoth, Amazon.com Inc., has pledged to invest €1.2 billion in computers and infrastructure. The Elysee claimed that 56 projects spanning several industries will be revealed during the event.

According to a statement from the firm, Amazon Web Services (AWS) will invest in expanding logistical infrastructure in the Auvergne-Rhône-Alpes region and cloud infrastructure in the Paris area to serve France's burgeoning generative AI market.

GenAI is becoming more and more popular, which has increased demand for cloud services. France is becoming a pioneer in AI, producing well-known companies like Mistral and Poolside. Companies like Google and Meta have set up shop in the country to conduct AI research.

In its cloud and online retail businesses, Amazon employs around 22,000 full-time people. Since 2010, the corporation has made over 20 billion euros in investments in its French operations.

"These positions are extra to the 2,000 we previously declared for 2024," stated Amazon France's national manager, Frédéric Duval.

Growing its logistics network would also require some of the investment in order to reduce carbon emissions and expedite delivery. It runs around thirty-five logistics facilities in France.

Meanwhile, as it increases expenditure on its Azure cloud and associated AI technologies, Microsoft is making bold global commitments. Microsoft declared in February that it will invest €3.2 billion in Germany. The business contributed $1.5 billion to the Abu Dhabi-based AI startup G42 in April.

Concerning its cloud business and AI investments—including the more than $10 billion it has invested in OpenAI—Microsoft is also coming under increased antitrust investigation.

According to a statement from the firm, Amazon Web Services (AWS) will invest in expanding logistical infrastructure in the Auvergne-Rhône-Alpes region and cloud infrastructure in the Paris area to serve France's burgeoning generative AI market.