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WSJ Tech News Briefing

Could Microsoft Lose Out as the U.S. Tussles With Brussels?

May 1, 2025
14:39

Podcast summary created with Snipd AI

Quick takeaways

  • Microsoft's commitment to expanding its presence in the EU amidst geopolitical tensions emphasizes the need for digital stability and trust with European stakeholders.
  • The growing rift between Microsoft and OpenAI highlights diverging strategic goals, complicating their partnership and raising questions about future collaboration in AI technology.

Deep dives

Microsoft's EU Expansion Plans

Microsoft announced its intention to expand its data center capacity in the European Union by 40% over the next two years, aiming to bolster its cloud and AI operations. This strategy is underscored by a recognition of its critical dependence on maintaining trust with customers and governments in Europe amidst rising geopolitical tensions. Microsoft President Brad Smith emphasized the need for American businesses to act as a bridge across the Atlantic, highlighting the importance of digital stability during uncertain times. Despite concerns about potential trade conflicts impacting operations in the EU, the company remains committed to strengthening its presence in this vital market.

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