Can the $3 billion Microsoft investment in Germany change Europe's view on AI (and Copilot)?

Microsoft will reportedly invest more than $3 billion ($3.44 billion) into AI development in Germany, over the next 2 years, according to the statement made by Brad Smith, President and Vice Chair, of Microsoft Corporation at one of the Microsoft AI Tour events in Berlin, this week.

The investment, seen by many publications, as being the most significant happening in Germany in 40 years, will focus on cloud spaces and AI technologies integration within the country’s infrastructure.

We are doing this because of the enormous confidence we have in Germany.

Brad Smith

While there are not many details about this partnership yet, Microsoft and the German government official will most likely offer more information in the next weeks.

However, there is one interesting point to consider: Microsoft has been blacklisted as a company in the EU region, as it was deemed as one of those companies that could monopolize the market. As a consequence, products such as Windows Copilot are not yet available in the EEA region which includes all of the EU countries, with Germany, as well.

So, does this mean Microsoft might release Windows Copilot sooner than expected in Europe? Well, that depends. And it mainly depends on European policies regarding the security and privacy of the AI tools.

For now, Microsoft is still blacklisted as part of the Digital Market Acts policy, but with the Redmond-based tech giant investing in AI development in Germany, the company might soon be able to bring its AI tools to the region.

Microsoft has already started to process of turning its services and products, such as Windows, to be more EEA-compliant. As we discussed in this article, this means Windows will have special features that are enabled only on the European continent: and Copilot could be released to the region in this form.

But that doesn’t mean its partnership with Germany wouldn’t help. Germany is currently the biggest economy in the European Union, and if the country’s stance on AI is influenced to become more receptive and positive, other EU countries could soon follow the example to implement AI in their infrastructures, as well.

While Microsoft might still need to be aware of certain policies, such as the one in the Digital Markets Act, it would make it easier for the company to release future AI-based products in the region. And it makes sense: the future Windows version will reportedly be AI-based, and AI is set to become an essential part of the future Microsoft services.

The company would turn the tides: it would EU that would need to adapt to the new technological realities, instead of the companies developing them. However, there will need to be a balance, and if that balance is achieved, then European people could enjoy Windows Copilot, as well.

So, in other words: Microsoft’s investment in Germany could, and it probably will change Europe’s view on AI.