Hitachi and Microsoft enter milestone agreement to accelerate business and social innovation with generative AI

Redmond, Wash., June 3/Tokyo, June 4, 2024 – Hitachi Ltd. (TSE:6501) and Microsoft Corp. announced a projected multibillion-dollar collaboration over the next three years that will accelerate social innovation with generative AI. Through this strategic alliance, Hitachi will propel growth of the Lumada business, with a planned revenue of 2.65 trillion yen (18.9 billion USD)^*1 in FY2024, and will promote operational efficiency and productivity improvements for Hitachi Group’s 270,000 employees.

Specifically, Hitachi will embed the Microsoft cloud, Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365 and GitHub Copilot into Lumada solutions to provide innovative solutions for the energy, mobility and other industries to deliver better outcomes for businesses and society. In addition, the two companies will promote joint projects to address pressing business needs such as bolstering cloud services, enhancing security, and mitigating the environmental footprint of data centers, which have become an increasing area of focus with the growing use of generative AI.

“We are entering a new era of AI with the promise to deliver transformative business outcomes across every role and industry,” said Satya Nadella, chairman and CEO, Microsoft. “Our expanded partnership with Hitachi will bring together the power of the Microsoft Cloud — including Microsoft Copilot — with Hitachi’s industry expertise to improve the productivity of 270,000 Hitachi employees and help address customers’ biggest challenges, including sustainability.”