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Big Tech is investing billions in French cloud infrastructure. Microsoft will invest €4 billion, while AWS will spend €1.2 billion for expansion in France.

Both companies are interested in investing in France mainly because the country has made AI development a spearhead. The French government is actively recruiting tech companies to run their AI operations in France.

To this end, Microsoft will invest an additional 4 billion euros in developing its cloud and AI infrastructure in France, Bloomberg writes. Earlier this year, Microsoft invested €15 million in France-based AI developer Mistral AI. Mistral AI, with its LLMs, is a direct competitor to OpenAI, in which Microsoft has previously made large investments.

Read more: Mistral AI seeks $600 million to realize AI ambitions

Besides France, Microsoft is also investing heavily in cloud infrastructure in other European countries. Earlier this year, the company announced a large investment of €3.2 billion for projects in Germany.

Amazon invests more than €1.2 billion

AWS is also heavily involved in investing in the country. It is investing more than 1.2 billion euros in its French operations, according to Reuters. More specifically, this involves further scaling up its cloud infrastructure in the Paris region. Above all, this scale-up should strengthen French activities in GenAI, the thinking is.

Amazon is also investing further in its French logistics infrastructure, especially in the region of Auvergne-Rhône-Alpes. The company now has 35 logistics centres throughout France. The new centers should shorten delivery times and generate fewer CO2 emissions. All the announced investments should eventually create three thousand new jobs in France.

Again, this announcement is part of the French government’s program to make the country more attractive to foreign investment.