Amazon Web Services (AWS) has unveiled plans to invest a substantial 2.26 trillion yen ($15.24 billion) in Japan by 2027, signaling a robust commitment to expanding its cloud computing infrastructure that underpins artificial technology (AI) services, according to a report by Reuters.
AWS Expansion in Japan
This significant investment is earmarked for enhancing facilities in Tokyo and Osaka, catering to the escalating customer demand. AWS, a subsidiary of Amazon.com, emphasizes its dedication to meeting clients' evolving needs by reinforcing cloud capacity in key Japanese cities.
The proposed investment builds upon the 1.51 trillion yen that AWS has already deployed between 2011 and 2022 for augmenting cloud capabilities in Japan. The company has delivered generative AI services to major Japanese corporate entities such as Asahi Group, Marubeni, and Nomura Holdings.
This strategic move aligns with Japan's broader efforts in both governmental and corporate sectors to keep pace with the rapid development of AI technology. Prime Minister Fumio Kishida's engagements with leaders from entities like OpenAI and Nvidia highlight the nation's focus on discussions regarding AI regulation and infrastructure enhancement, according to Reuters.
Amazon Invests Further in Live Sports Offerings
In a parallel development, Amazon is making substantial inroads into the realm of live sports offerings through a noteworthy investment in local TV network Diamond Sports Group, a prominent sports rights holder in the United States.
Diamond Sports Group, recognized as a leading network of local sports channels, holds regional broadcast rights for over half of the teams in major basketball, baseball, and ice hockey leagues in the U.S. This move strategically aligns with Amazon's endeavor to diversify its content portfolio, particularly in the lucrative sector of live sports entertainment.
Under the recently announced collaboration, Diamond Sports channels will be seamlessly integrated into Amazon's Prime Video platform, providing users with the option for an additional subscription fee to access the content.
However, it is also worth noting that this collaboration unfolds within the broader context of Diamond Sports Group's efforts to navigate through Chapter 11 bankruptcy proceedings.
Diamond Sports, owner of 18 networks operating under the Bally Sports banner, possesses broadcasting rights for 37 professional teams, including prominent teams in baseball, the NBA, and the NHL.
The partnership with Amazon is pivotal for Diamond Sports as it charts a course through bankruptcy, supported by a restructuring agreement and financing commitments from key creditor groups.
As part of the restructuring, Amazon's involvement extends beyond a minority investment, involving a comprehensive commercial arrangement. This arrangement positions Prime Video as the primary platform for customers to access Diamond's services, enabling direct-to-consumer streaming of local channels featuring live MLB, NBA, and NHL games.
The collaboration also outlines a resolution to pending litigation, with Diamond Sports' parent company, Sinclair Inc., agreeing to a $495 million cash settlement and ongoing management and transition services. This settlement aids Diamond's reorganization and separation from Sinclair's operations.
