Hitachi and Microsoft Announce Multibillion-Dollar AI Collaboration

Hitachi Ltd. and Microsoft Corp. have joined hands for a multibillion-dollar partnership to accelerate social innovation through generative AI, which will span over three years.  

Hitachi aims to integrate Microsoft’s cloud technologies, including Azure OpenAI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot, into its Lumada solutions. It is projected to drive the growth of Hitachi’s Lumada business, with expected revenues of 2.65 trillion yen ($18.9 billion) in FY2024.

Further, Hitachi's Generative AI Center will work with Microsoft to boost operational efficiency and application development across the Hitachi Group, using Copilot for Microsoft 365 and GitHub Copilot.

Moreover, Hitachi Rail is utilizing generative AI for predictive maintenance, enhancing equipment monitoring, and improving forecast accuracy to prevent breakdowns and reduce operating expenses.

This strategic collaboration is committed to supporting the energy transition to reduce downtime and increase profitability.

To address the increasing environmental impact of AI, Hitachi and Microsoft will work to achieve zero carbon emissions, starting with a data center project in Europe.

Reportedly, Hitachi plans to train over 50,000 generative AI professionals as part of the partnership. The training program will incorporate advanced software development skills leveraging GitHub Copilot and the Azure OpenAI Service.

Keiji Kojima, President and CEO of Hitachi, emphasizes that the company will invest 300 billion yen ($2.1 billion) in generative AI to capitalize on new growth opportunities in FY2024.

According to Kojima, applying generative AI to improve frontline workers' productivity is seen as increasingly important for the future. By combining their strengths, Hitachi and Microsoft will address the challenges faced by customers and society, contributing to a more sustainable future.

Satya Nadella, Microsoft Chairman and CEO, says, “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.”