Microsoft Corp. will invest $2.9 billion in Japan over two years, its largest investment in the country, aiming to reinforce data centers that are essential for processing by generative artificial intelligence, sources familiar with the plan said Tuesday.

The U.S. technology giant also plans to open a research base in Tokyo, its first in Japan, the sources said.

Microsoft is expected to make an announcement soon to coincide with Japanese Prime Minister Fumio Kishida's visit to the United States.

The company plans to upgrade equipment at its data centers in Tokyo and Osaka by introducing graphic processing units, or advanced semiconductors, said the sources.

==Kyodo

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