Microsoft and Hitachi Forge $18.9 Billion Generative AI Alliance

Hitachi is embarking on a transformative partnership with Microsoft, tapping into Microsoft’s cutting-edge AI and cloud technologies through a multi-year, multibillion-dollar agreement. Over the next three years, Hitachi will integrate Microsoft’s cloud services, prominently featuring the Azure OpenAI Service, into its digital solutions division, Lumada. This collaboration will empower Lumada with access to OpenAI models, significantly enhancing its ability to create innovative digital solutions for clients.

In addition, Lumada will utilize GitHub Copilot, which will provide developers with advanced tools to streamline coding tasks and boost productivity within Microsoft 365 applications. Together, these strategic initiatives are projected to generate a remarkable $18.9 billion in revenue for Lumada in 2024 alone. Already, Lumada is leveraging Microsoft’s Generative AI within JP1 Cloud Services to accelerate IT response times.

Keiji Kojima, President and CEO of Hitachi, highlighted the collaboration's potential by stating, “Hitachi and Microsoft have been involved in a variety of co-creation projects, including next-generation digital solutions for manufacturing and logistics, as well as a field-extended metaverse operating on Microsoft Teams. This new agreement will expedite social innovation, focusing on vital areas such as energy and mobility. By applying generative AI, we aim to enhance the productivity of frontline workers, an increasingly important priority.”

Hitachi plans to further enhance employee efficiency by adopting Microsoft’s Copilot solutions, providing training to the workforce on utilizing generative AI technologies and the comprehensive suite of Microsoft services. The Azure OpenAI Service will also allow Hitachi to harness advanced multimodal foundation models, such as GPT-4o, significantly improving customer service capabilities.

The partnership will extend to collaborative projects that employ generative AI to bolster data center security and sustainability efforts. Notably, Hitachi’s Railway division is already utilizing a generative AI-powered predictive maintenance tool on the Microsoft Azure platform.

Satya Nadella, Chair and CEO of Microsoft, shared insights into the partnership's vision: “We are entering a new era of AI that promises transformative business outcomes across every role and industry. Our expanded partnership with Hitachi will combine the capabilities of Microsoft Cloud, including Microsoft Copilot, with Hitachi's industry expertise, ultimately enhancing the productivity of 270,000 Hitachi employees and addressing significant challenges faced by our customers, particularly in sustainability.”

Through this ambitious collaboration, Hitachi and Microsoft are poised to revolutionize the landscape of digital solutions, driving advancements in productivity and sustainability across various industries.