Microsoft will invest $2.2 billion in cloud and AI services in Malaysia

KUALA LUMPUR, Malaysia (AP) — Microsoft is investing $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, its CEO Satya Nadella said Thursday.

It marks Microsoft's single largest investment in Malaysia, as the tech giant seeks to bolster support for AI development in the region and worldwide.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” he said. “Our investments in digital infrastructure and skilling will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”

Nadella on Tuesday also announced a $1.7 billion investment in cloud and AI services in Indonesia during his visit there as part of his Southeast Asia tour. On Wednesday, he said Microsoft will build its first regional data center in Thailand.

In April, the tech giant similarly unveiled a $2.9 billion investment in Japan and $1.5 billion in G42, an AI firm in Abu Dhabi.

Microsoft also pledged to provide AI training for 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand and Vietnam by 2025.

Nadella earlier met Prime Minister Anwar Ibrahim, who said the investment will be the key support pillar for the government's goal to enhance AI capacity in Malaysia.

The new investment will include AI training for another 300,000 people, the establishment of a national AI center of excellence, enhancing the nation's cybersecurity capabilities and supporting the growth of Malaysia's developer community, Anwar said on Facebook.

Microsoft runs one of the world’s largest cloud computing operations and has taken a leap into artificial intelligence through its partnership with OpenAI, developers of ChatGPT.

Since then, Microsoft has integrated an AI assistant into its Microsoft Edge browser, named Copilot, helping lift its profits by 20% in the first quarter.

Microsoft sees Southeast Asia, with its population of over 600 million people, as a growing market and potential location for more AI product development. A study held by global consulting firm Kearney said AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030. Indonesia is expected to capture $366 billion of the total and Malaysia $115 billion.

Microsoft said in a statement that the investment in Malaysia will build on its 2021 program to support inclusive economic growth. It said the proposed national AI center will drive AI adoption across key industries and public sector, while ensuring AI governance and regulatory compliance.

“Together with Microsoft, we look forward to creating more opportunities for our (small and medium-sized enterprises) and better paying jobs for our people as we ride the AI revolution to fast-track Malaysia's digitally empowered growth journey," Trade Minister Zafrul Aziz said in the statement.

Microsoft CEO Satya Nadella, speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

Microsoft CEO Satya Nadella speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

Microsoft CEO Satya Nadella speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

Microsoft CEO Satya Nadella speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

Microsoft CEO Satya Nadella, speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

Microsoft CEO Satya Nadella speaks during a conference in Kuala Lumpur, Malaysia, Thursday, May 2, 2024. Microsoft will invest $2.2 billion over the next four years in Malaysia's new cloud and artificial intelligence infrastructure as well as partnering with the government to establish a national AI center, Nadella said Thursday. (AP Photo/Vincent Thian)

In this photo provided by Malaysia Prime Minister Office, Malaysia's Prime Minister Anwar Ibrahim, right, poses for a photo with Microsoft CEO Satya Nadella in Putrajaya, Malaysia, Thursday, May 2, 2024. (Albarra Azfar/Prime Minister's Office of Malaysia via AP)

In this photo provided by Malaysia Prime Minister Office, Malaysia's Prime Minister Anwar Ibrahim, right, meets with Microsoft CEO Satya Nadella at the prime minister's office in Putrajaya, Malaysia, Thursday, May 2, 2024. (Albarra Azfar/Prime Minister's Office of Malaysia via AP)

In this photo provided by Malaysia Prime Minister Office, Malaysia's Prime Minister Anwar Ibrahim, right, shakes hands with Microsoft CEO Satya Nadella at the prime minister's office in Putrajaya, Malaysia, Thursday, May 2, 2024. (Albarra Azfar/Prime Minister's Office of Malaysia via AP)

NEW YORK (AP) — U.S. stocks are drifting around their record levels Thursday after the Dow Jones Industrial Average briefly topped the 40,000 level for the first time.

The Dow was up 55 points, or 0.1%, at 39,965 in late trading. The S&P 500 index, which is much more widely followed on Wall Street and dictates the performance of many more 401(k) accounts than the Dow, was virtually unchanged, with an hour remaining in trading. The Nasdaq composite was also flat.

All three indexes had rallied on Wednesday to all-time highs. They've charged higher despite high inflation, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived.

Walmart was one of the strongest forces lifting the market, and it rose 7.2% after reporting stronger profit for the latest quarter than analysts expected. It also said its revenue for the year could top the forecasted range it had earlier given.

Walmart's strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation and more expensive credit-card payments, particularly those making lower incomes.

Target, which reports its quarterly results next week, climbed following Walmart's report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2.5%.

Chubb climbed 4.8% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer.

Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades.

A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived.

Treasury yields have largely eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession. Yields rose Thursday following some mixed data on the economy.

One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast.

“Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The yield on the 10-year Treasury ticked up to 4.37% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.79% from 4.72%.

On the losing end of Wall Street, Deere fell 4.5% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment.

Homebuilders fell following the weaker-than-expected report on housing starts. They gave back some of their big gains from the day before, when hopes for lower mortgage rates had sent them sharply higher. Lennar fell 2.3%, and D.R. Horton sank 3.2%.

GameStop and AMC Entertainment slid for a second straight day, pulling back further from their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects.

GameStop fell 24.7%, though it’s still up 70% for the week so far. AMC Entertainment lost 11.9%.

Under Armour swung between losses and gains after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.” The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It was down 1.5%.

In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

FILE - An entrance to the New York Stock Exchange is shown on May 8, 2024, in New York. Shares opened lower in Europe on Thursday, May 16, 2024, after most Asian benchmarks gained, tracking a Wall Street rally driven by hopes that inflation is heading back in the right direction. (AP Photo/Peter Morgan, File)

A person passes an entrance to the Wall Street subway station in New York on Wednesday, May 15, 2024. Trading on Wall Street is muted early ahead of the U.S. government's latest reports on inflation and retail sales. (AP Photo/Peter Morgan)

A currency trader passes by the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, May 16, 2024. (AP Photo/Ahn Young-joon)

Banners for Pinterest, displayed to mark the fifth anniversary of the company's listing, hang on the front of the New York Stock Exchange in New York on Wednesday, May 15, 2024. U.S. stocks are rising toward records with hope that inflation is heading back in the right direction. (AP Photo/Peter Morgan)

A currency trader passes by the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, May 16, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, May 16, 2024. (AP Photo/Ahn Young-joon)