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Microsoft expands AI push in Taiwan with US$308 million fund

Ines Lin, DIGITIMES, Taipei 0

Credit: Microsoft Taiwan

Microsoft's Asia Pacific tech conference, DevDays Asia, has reached its ninth year in Taiwan.

Taiwan's Ministry of Digital Affairs has secured NT$10 billion (US$ 308.40 million) from the National Development Fund to invest in AI startups, partnering with Microsoft to accelerate AI industrialization and the integration of AI across various industries. The Ministry also confirmed that Microsoft's data center in Taiwan is now operational.

Microsoft Taiwan General Manager Sean Pien highlighted that the data center is a multi-location, high-resilience regional hub, designed for phased rollout rather than a one-time launch. Some heavily regulated companies are already utilizing the facility.

Industry insiders suggest that the local data center is particularly valuable for sectors like finance, healthcare, and government agencies, which are sensitive to data storage locations. Additionally, the reduced transmission latency is a significant advantage for gaming and streaming services. However, most cloud users still rely on multiple providers to minimize the risk of data loss.

On the subject of AI PCs, Pien observed that discussions often center on hardware specs, such as the device's computational power measured in TOPS (tera operations per second). While these are important infrastructure elements, he stressed that Microsoft's ability to set industry standards stems from the native support of its Windows operating system. This includes built-in models, open ecosystem APIs, and the capability for PCs to utilize some models offline.

This infrastructure powers the developer ecosystem, from local PC operating systems to expansive cloud applications. Microsoft has noticed that AI applications are expanding from industrial to personal use cases, such as AI agents that could eventually streamline workflows on PCs and smartphones. These advances depend not just on hardware, but on the integration of diverse APIs. Pien expects significant breakthroughs in this area by 2024-25.

Regarding the collaboration with MediaTek, Pien emphasized their joint focus on advancing generative AI. Microsoft's role is to provide the technical platform, including large models, cloud infrastructure, and API management, while MediaTek focuses on application development. MediaTek's platform is not only used internally but is also being extended to other sectors like education, finance, and manufacturing. When industry-specific models or datasets are required, they can be developed in partnership with shared clients.

Microsoft Taiwan COO Flora Chen noted that the company continues to collaborate with the government on digital transformation and talent development. In 2023, Microsoft achieved its goal of training 200,000 digital talents ahead of schedule, and an additional 50,000 AI specialists over the past year.

On energy matters, Chen stated that Microsoft's global data center strategy prioritizes renewable energy. The company has 135 projects across 16 countries, with a total renewable energy capacity of 30 megawatts. Microsoft is leveraging innovative technologies to enhance energy efficiency and cooling while helping industries manage carbon emissions through its sustainable cloud and digital solutions.

Microsoft reports that GitHub Copilot has surpassed 1.8 million paid users globally, with over 70,000 organizations subscribing. In Taiwan, more than 70% of the top 100 companies have adopted Microsoft AI services and have already implemented them.