Hitachi And Microsoft Forge Multi-Billion Dollar AI Collaboration: Details

Japanese conglomerate Hitachi Ltd. HTHIF and Microsoft Corp MSFT have unveiled a projected multi-billion dollar collaboration spanning the next three years, aimed at propelling social innovation with generative AI.

The strategic alliance seeks to enhance Hitachi’s Lumada business, targeting revenue of ¥2.65 trillion ($18.9 billion) in FY2024.

“Hitachi has been driving transformation by applying AI across the Hitachi Group to improve productivity and will invest 300 billion yen（2.1 billion USD) in GenAI to capture new growth opportunities in FY2024,” said Keiji Kojima, president and CEO of Hitachi. 

The collaboration entails Hitachi integrating Microsoft cloud services, including Azure Open AI Service and Dynamics 365, into Lumada solutions.

Together, they aim to address industry challenges such as energy and mobility, harnessing generative AI for frontline worker productivity.

Hitachi’s commitment to invest in GenAI aligns with its broader transformation strategy, focusing on enhancing operational efficiency and application development within the group.

Hitachi Rail leverages GenAI for predictive maintenance, enhancing equipment monitoring and service quality while reducing operating expenses.

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Microsoft Azure facilitates streamlined data visualization, empowering AI-driven insights for rail infrastructure management.

Hitachi’s Lumada solutions will integrate generative AI capabilities to accelerate response times and operational efficiencies. Microsoft’s Generative AI for JP1 Cloud Services aims to enhance IT department responsiveness and service efficiency.

The partnership extends to supporting energy transition through improved digital solutions for asset performance management and energy trading, with Hitachi Energy’s technology and Microsoft’s cloud infrastructure playing pivotal roles.

“Our expanded partnership with Hitachi will bring together the power of the Microsoft Cloud — including Microsoft Copilot — with Hitachi’s industry expertise to improve the productivity of 270,000 Hitachi employees and help address customers’ biggest challenges, including sustainability,” said Microsoft Chairman and CEO Satya Nadella.

Hitachi and Microsoft also prioritize talent development, aiming to train over 50,000 GenAI professionals equipped with advanced software development skills using GitHub Copilot and Azure OpenAI Service.

Price Action: MSFT shares are trading lower by 0.38% at $411.95 in premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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