Hitachi and Microsoft forge billion-dollar alliance to spearhead generative AI revolution

Hitachi Ltd. and Microsoft Corp. have announced a strategic collaboration projected to be worth billions, aiming to drive generative AI innovations across various sectors. This partnership underscores both corporations’ commitment to accelerating the digital transformation and improving productivity across Hitachi’s operations.

As part of the agreement, Hitachi will integrate Microsoft’s array of technologies, including Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot, into its flagship Lumada solutions. This move is poised to enhance the Lumada business, targeting a revenue goal of 2.65 trillion yen ($18.9 billion USD) for FY2024, and streamline processes for its 270,000 employees.

The partnership will focus on developing cutting-edge solutions for the energy and mobility sectors, aiming to deliver enhanced business outcomes and societal benefits. Additionally, the two giants will tackle pressing business needs, such as strengthening cloud services, boosting security, and reducing the environmental impact of data centers.

“By applying AI technology across our company, we are transforming how we operate and seeking to capitalize on new growth opportunities through generative AI,” stated Keiji Kojima, president and CEO of Hitachi. “This partnership will allow us to expand our innovative efforts into crucial areas like energy and mobility, enhancing productivity for frontline workers.”

Satya Nadella, chairman and CEO of Microsoft, highlighted the transformative potential of AI, noting, “Our partnership will leverage the strength of Microsoft Cloud and Copilot technologies with Hitachi’s industry expertise to address some of the most challenging issues faced by businesses, including sustainability concerns.”

In an effort to foster innovation, Hitachi’s Generative AI Center will work closely with Microsoft to refine application development within the group, utilizing tools like GitHub Copilot and Azure OpenAI Service to maintain high standards and enhance productivity in system development.

Additionally, the alliance will support Hitachi’s initiative to train over 50,000 “GenAI Professionals,” equipped with advanced AI skills to aid customer transformations and internal efficiency improvements.