Blocked from operating and expanding in China, leading American computing and software companies have shifted their focus to Japan, reinforcing a longstanding partnership that is accelerating the recovery of Japan’s technological competitiveness.
American tech giants Nvidia, Microsoft and Oracle have all recently announced new investments in data centers and related services in Japan. They have also invited Japan’s participation in AI and quantum computing development projects.
In March, the new ABCI-Q supercomputer built by Fujitsu at Japan’s National Institute of Advanced Industrial Science and Technology (AIST) announced it will feature Nvidia’s CUDA-Q hybrid quantum-classical computing platform, equipped with more than 2,000 graphics processing units (GPUs) for accelerated computing.
(ABCI is an acronym for AI Bridging Cloud Infrastructure; CUDA for Compute Unified Device Architecture.)
ABCI-Q is designed for integration with future quantum hardware. It will enable quantum simulations for research and contribute to the advance of machine learning in fields such as AI, energy, biology, pharmaceuticals, logistics and industry..
According to Masahiro Horibe, a deputy director at AIST, the new supercomputer “…will let Japanese researchers explore quantum computing technology to test and accelerate the development of its practical applications.”
If everything goes as planned, ABCI-Q will be available commercially beginning in 2025.
In early April, Microsoft announced plans to invest US$2.9 billion over the next two years to expand its cloud computing and AI infrastructure in Japan, open a Microsoft Research Asia lab in Tokyo, provide AI-related training to more than three million Japanese workers and students, assist AI developers and start-ups, and increase cybersecurity cooperation with the Japanese government.
The investment supports the Generative AI Accelerator Challenge (GENIAC) program led by Japan’s Ministry of Economy, Trade and Industry (METI). GENIAC was established to help companies acquire the computing resources necessary to develop foundation models for generative AI.
METI regards this as essential to economic and social progress, stating that:
“Generative AI is considered to be a technological innovation comparable to the Internet and other advanced technologies. As this innovative technology is expected not only to contribute to solving social problems, including labor shortages, but also to be utilized in all industries, it may have a significant impact on industrial activities and people’s lives.”
“Whether or not Japanese companies have the capability to develop generative AI is a key factor that may determine the availability of this technology in Japan as well as the scope of innovation to be created.”
Microsoft, which has operated in Japan for 46 years, also plans to grant $10 million to the University of Tokyo and the Partnership on Artificial Intelligence Research between Keio University and Carnegie Mellon University for research projects to be conducted over the next five years.
Some Japanese critics believe that the Japanese government is giving Microsoft too much power over the the nation’s information infrastructure but Prime Minister Fumio Kishida is not among them.
“As economic activities in the digital space increase, it is important for the Japanese industry as a whole to work with global companies like Microsoft that are equipped with a set of digital infrastructure,” Kishida said.
“We appreciate Microsoft’s announcement of its new investment in Japan. Microsoft has made significant contributions to the social implementation of generative AI in Japan through various initiatives, and we look forward to further collaboration. We also look forward to deepening our cooperation in the field of cybersecurity.”
Japan has neither the time nor the resources to reinvent Microsoft and, unlike China, it geopolitically does not need to do so. The same goes for Oracle, Nvidia and other leading US tech companies.
To be sure, the tech dependence works both ways. Intel relies on Japanese semiconductor manufacturing equipment, US car companies use Japanese industrial robots and Toyota makes most of the hybrid vehicles that Americans now prefer.
Takuya Hirai, a Japanese Diet member who previously served as Minister for Digital Transformation and is currently chairperson of the Headquarters for the Promotion of a Digital Society of the ruling Liberal Democratic Party’s Policy Research Council, is among Microsoft’s biggest backers.
“The adoption of digital tools is essential for addressing Japan’s societal challenges of an aging population and the pursuit of economic growth and regional revitalization,” said Hirai.
“Microsoft’s investment contributes significantly in advancing Japan’s AI capabilities, particularly in infrastructure and talent development. I wholeheartedly welcome this initiative and look forward to the leadership role Microsoft can play in promoting collaboration between Japan and the United States, as well as across public and private sectors,” he added.
Oracle also announced this month plans to invest more than $8 billion dollars in Japan over the next decade to build new data centers in Japan and enhance customer support to meet anticipated growth in demand for cloud computing and AI services.
Oracle Japan’s existing data centers, most of them located near Tokyo and Osaka, will also be upgraded with new GPUs from Nvidia, the company said.
Oracle and Nvidia are collaborating to deliver AI solutions for security-conscious governments and private sector companies worldwide.
In Japan, Oracle’s distributed cloud, AI infrastructure and generative AI services, combined with Nvidia’s accelerated computing and generative AI software, will be used to store and process important data and personal information within the country, in accordance with the digital sovereignty requirements in the Act on the Protection of Personal Information.
Hit by numerous hacking attacks in recent years, including by Chinese and North Korean hackers, Japan’s government and private sector is now on cybersecurity high alert to prevent data leaks.
Alongs with the expansion of local engineering support, this should facilitate the extension of Oracle’s distributed cloud infrastructure and services throughout Japan.
Targeted markets include government agencies, telecommunications, finance, healthcare and other data-intensive enterprises and organizations.
Oracle and Microsoft are making their new investments in Japan with an eye on Amazon. In January, Amazon Web Services announced plans to spend about $15 billion through 2027 on new data centers to support its Japan-based cloud computing services.
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Wanda Parisien is a computing expert who navigates the vast landscape of hardware and software. With a focus on computer technology, software development, and industry trends, Wanda delivers informative content, tutorials, and analyses to keep readers updated on the latest in the world of computing.
