[HN Gopher] Microsoft bets on Germany in EUR3.2B AI push
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       Microsoft bets on Germany in EUR3.2B AI push
        
       Author : thunderbong
       Score  : 122 points
       Date   : 2024-02-17 10:19 UTC (12 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | lifestyleguru wrote:
       | I would invest a round 4B EUR, 3.2B is an awkward number.
        
         | lnxg33k1 wrote:
         | Probably they forgot the other wallet with 800 million euros in
         | the other pants
        
           | hef19898 wrote:
           | Happens all to me all the time, really annoying when you
           | don't want to be cheap on tips...
        
         | ben_w wrote:
         | If you've got enough money that EUR800 million is something
         | you'd spend purely for the aesthetics of your invoice, please
         | feel free to send the extra my way.
        
           | dubcanada wrote:
           | Joking, but surely Microsoft does.
        
         | Adverblessly wrote:
         | It doesn't go well when reporting on it, but clearly they must
         | have actually went for 3,220,176,896 EUR, signalling to Germany
         | that they are 0xBFF00000's
        
       | ipsum2 wrote:
       | Isn't power really expensive in Germany? Wonder why they would
       | build data centers there.
        
         | lispm wrote:
         | Germany is in the middle of Europe? 3rd largest economy (by
         | GDP) in the world? Lots of customers nearby? It has one of the
         | world-wide largest Internet exchange nodes in Frankfurt (-> DE-
         | CIX)? It helps to adhere to EU (-> GDPR) and German regulations
         | having data local, when wanting to serve EU customers?
        
           | openplatypus wrote:
           | > It helps to adhere to EU (-> GDPR) and German regulations
           | having data local
           | 
           | Not this again. The moment you transmit data to European
           | based servers under control of US corporation you could just
           | as well send it straight to the US. Same difference.
           | 
           | Nobody cares if AWS, Azure or GCP have EU datacenters. They
           | are for most part understood as under US control.
        
         | V__ wrote:
         | It's on a downwards trend again after the spike created by the
         | war [1]. However, I don't think this is a big factor, since
         | Microsoft is the second-biggest buyer of renewable energy, so
         | other prices apply.
         | 
         | [1] https://www.statista.com/statistics/1346782/electricity-
         | pric...
         | 
         | [2] https://www.renewableenergyworld.com/news/bloombergnef-
         | corpo...
        
           | huppeldepup wrote:
           | That second link ... it's depressing how a site about
           | renewable _energy_ writes an article about cumulative
           | _energy_ consumption but consistently fails to tell the
           | difference between energy and power.
        
         | wanderlust2021 wrote:
         | EU's best AI/ML universities are nearby (ETH, Tubingen,
         | Munich,...)
        
           | FirmwareBurner wrote:
           | I think British, Swiss and French universities top those in
           | Germany for AI/ML.
        
             | pgeorgi wrote:
             | ETH is Switzerland. The claim was "nearby". And when you're
             | in Germany's south (even in Munich, which is relatively far
             | east), the major French universities are pretty accessible,
             | too.
        
               | shankr wrote:
               | They could have just gone to Switzerland and Germany
               | would have been nearby! Also you get Germand and French
               | speakers! So easy to jump between France and Germany.
        
         | locallost wrote:
         | Electricity for the industry is cheaper, they are freed from
         | some taxes (not sure which one) and obviously VAT is deductible
         | which is not the case for end consumers.
         | 
         | Regardless of that it's a myth anyway. Germany has a very
         | competitive electricity market, and it basically works by
         | having all the costs on the actual electricity bill (will not
         | be 100% true in the coming years, but it was until now). Some
         | other countries have cheaper electricity on paper, but cover
         | the real costs with government money / taxes. France is the
         | most obvious example as a neighbouring country.
        
           | lyu07282 wrote:
           | Why do you think it's a myth? It is true. Germany has one of
           | the highest electricity prices in the world. It's well known
           | because it's true.
        
             | pgeorgi wrote:
             | Residential electricity has the full rates on everything.
             | Commercial electricity is a bit cheaper because taxes and
             | network fees are reduced, and industrial electricity is
             | even cheaper because the reductions are even higher.
             | 
             | In case of the network fees, residential customers directly
             | subsidize industrial customers: network fees cover the
             | network operation costs, so it's a zero-sum game where one
             | party's reduction is another party's increase.
             | 
             | It's still somewhat expensive to operate electricity heavy
             | industry in Germany, but much less outrageous than the
             | residential prices that are usually used in for comparisons
             | in the news.
        
         | dubcanada wrote:
         | There are also already tons of DCs in Germany. So obviously
         | it's not prohibiting anything.
        
         | leobg wrote:
         | I pay ~50 Euro cents per kWh. Even if you gifted me a GPU
         | server it would be cheaper for me to use the cloud.
        
           | Scharkenberg wrote:
           | Change your provider, you're overpaying by about 20 ct.
        
           | sveme wrote:
           | Why do you pay so much? Latest contracts are 23 Cents/kWh, I
           | pay about the same using tibber's dynamic tariff. Sounds like
           | a massive rip off.
        
             | lifestyleguru wrote:
             | His current provider sends him regularly leaflets with
             | windmills. No one would resist that.
        
           | pgeorgi wrote:
           | Check your provider's current rate, it's probably closer to
           | 30 cents. Then call them and ask if they want you to switch
           | at the next opportunity or if they're willing to hoist you
           | over into the new rate.
           | 
           | They even backdated my contract change by a few months when I
           | did that.
        
       | throw_a_grenade wrote:
       | If anyone cares to fix title, here's the character to copy-paste:
       | EUR (3,2BEUR)
        
         | culturestate wrote:
         | Using the name rather than the symbol is just the Reuters house
         | style for non-USD currencies in headlines.
        
       | V__ wrote:
       | I haven't seen it mentioned yet on Hacker News, but Germany is
       | about to pass the "Gesundheitsdatennutzungsgesetz". This bill
       | allows anonymized access for researchers to all German health
       | care data. Data from over 83 million people.
       | 
       | The example given by the health minister for how this might play
       | out: Researchers find an interesting pattern in the data. They
       | request the ministry to ask the matched people for permission to
       | become participants in a study or direct access. If permission is
       | given, the anonymization is lifted in part and a study could move
       | forward. This alone would make Germany a pretty fascinating place
       | for future AI research.
        
         | zelphirkalt wrote:
         | Sounds perhaps a bit naive, as one might expect from German
         | government, when it comes to data. How much of such data does
         | one need to de-anonymize someone? How easy will it be to
         | accidentally slip identifying data in using whatever kind of
         | system, that is supposed to be used? How easy will it be for
         | any company like MS to correlate that data with all that other
         | data they extracted without user consent?
        
           | lb4r wrote:
           | >How easy will it be for any company like MS to correlate
           | that data with all that other data they extracted without
           | user consent?
           | 
           | Doable to some extent, but would they really learn much that
           | we haven't already told them, given our propensity to Google
           | for symptoms and diseases?
           | 
           | Personally, my worry here, if I had some embarrassing medical
           | history that I wouldn't want people to know about, would be
           | some malicious party gaining access to de-anonymized data and
           | using it to blackmail, or just simply making it public.
           | 
           | Edit: Come to think of it, insurance companies could probably
           | have a field day with a data set like this.
        
             | LadyCailin wrote:
             | The civilized world has universal health coverage, so the
             | insurance thing isn't really a problem except in one
             | particular country. But the malicious release is definitely
             | a problem.
        
               | fileeditview wrote:
               | It never is a problem until it is. Insurance companies in
               | Germany are also not benevolent. If there is a case where
               | they do not have to pay they won't. If they can use data
               | to save money they will do it, even if it worsens your
               | conditions.
        
               | snowpid wrote:
               | " Insurance companies in Germany are also not benevolent.
               | " You know, that the leaders of public insuarances are
               | voted by the customers.
        
               | angra_mainyu wrote:
               | One might argue that the free market is consumer-driven
               | voting.
        
               | wirrbel wrote:
               | Not all public insurances perform these elections but
               | some, e.g. Barmer GEK, Techniker Krankenkasse, DAK-
               | Gesundheit, Kaufmannische Krankenkasse - KKH,
               | Handelskrankenkasse und BKK RWE and I think also AOK.
        
               | ahartmetz wrote:
               | It doesn't feel adversarial as a customer. Never did for
               | me, never heard it from others. They aren't even regular
               | companies - they have a special legal status. Private
               | insurance, which is also available, is different.
        
               | angra_mainyu wrote:
               | Blatantly false.
               | 
               | I've been in Europe two decades and aside from health
               | insurance being key to more than a few countries, private
               | health insurance is relatively common in tandem with
               | public health services.
        
               | wirrbel wrote:
               | Quite typically there is basic service via a welfare
               | system and additional or premium service with insurances.
               | I pay into the public health system at a rate
               | proportional to my income (which is more than what I
               | would pay if I had a worse-paying job for the same
               | service), and I have an additional dental insurance which
               | insures my teeth.
        
               | tgsovlerkhgsel wrote:
               | The "civilized world" does not, however, have universal
               | life insurance nor disability insurance that would cover
               | the full standard of living. Those are, at least in
               | Germany, privatized, and companies could benefit a lot
               | from having access to some extra data.
               | 
               | I'm not sure that getting caught using such data would be
               | sufficiently bad news to be not worth it.
        
               | graemep wrote:
               | No, because medial data can also be used for things like
               | life insurance, insurance against loss of earnings caused
               | by sickness, and probably a lot of other things.
        
           | V__ wrote:
           | The companies and researchers get access to the data with
           | oversight but the data isn't shared. They basically get
           | access to a server to run their analysis but can't retrieve
           | the data.
        
             | chopin wrote:
             | There is almost zero retribution for non-compliance. This
             | law is ripe for abuse. It's only a question when, not if,
             | the data will become public. Conveniently, people with
             | private insurance are exempted, which are most of our
             | politicians and all of our public servants.
        
               | V__ wrote:
               | Wrong. Potential fines for a GDPR breach, under which
               | this could fall under, are 4% of the firm's worldwide
               | annual revenue from the preceding financial year. But
               | there is also a criminal code in the works for violating
               | data provided by this bill.
        
           | belter wrote:
           | Incredibly naive. Easy to de-anonymize. First they come for
           | the books, now AI practitioners come for the health data.
           | 
           | "Estimating the success of re-identifications in incomplete
           | datasets using generative models" -
           | https://www.nature.com/articles/s41467-019-10933-3
           | 
           | "...We here propose a generative copula-based method that can
           | accurately estimate the likelihood of a specific person to be
           | correctly re-identified, even in a heavily incomplete
           | dataset. On 210 populations, our method obtains AUC scores
           | for predicting individual uniqueness ranging from 0.84 to
           | 0.97, with low false-discovery rate. Using our model, we find
           | that 99.98% of Americans would be correctly re-identified in
           | any dataset using 15 demographic attributes. Our results
           | suggest that even heavily sampled anonymized datasets are
           | unlikely to satisfy the modern standards for anonymization
           | ..."
        
             | jimkoen wrote:
             | A similar paper, ~3k citations, on deanonymization in
             | sparse datasets:
             | 
             | https://systems.cs.columbia.edu/private-systems-
             | class/papers...
             | 
             | It's well known within the sphere that anonymization is
             | hard and deanonymization is trivial. The original Netflix
             | prize around their recommender system also had issues with
             | deanonymization.
        
           | jimkoen wrote:
           | It is important to note the the original draft for the law
           | does not talk about anonymizing data, but rather
           | pseudonymizing of data. So no attemt is made at keeping
           | identities of patients truly anonymous (which has been
           | repeadeatly proven to be impossible in sparse datasets).
        
         | lnxg33k1 wrote:
         | I would hope that there is a way for the subjects themselves to
         | be involved in the decision before their data is de-anonymised
        
           | luplex wrote:
           | I think the plan is an opt-out solution. But they really
           | don't want many people to actually opt out.
           | 
           | And it's a legal challenge to make sure that everyone
           | understands how and why they should opt out, even my grandma.
        
             | lnxg33k1 wrote:
             | How much I love these solutions where you're stripped of
             | your rights to privacy be default, but if you want it back
             | you need to invest your free time in order to go through
             | the awesome process of bureaucracy, really for these people
             | we're just disposable beings that should be ready to give
             | up their limited time in order to act on any bullshit
             | politicians think about
        
               | CaptainFever wrote:
               | The issue is that an opt in solution might make the
               | system unviable in the first place, which reduces utility
               | for everyone. Of course, opt out should be simple, but if
               | the majority of people don't care and the data is
               | anonymised properly, I don't really see the issue since
               | this is used to further the sciences.
        
               | V__ wrote:
               | Do you mean the bullshit to allow innovation in healt
               | treatments and research?
        
               | lnxg33k1 wrote:
               | There is always a greater good that can be used to strip
               | people of what they want is their right to a private and
               | quiet life, what was yesterday, encryption in
               | communication for safety, their medical data for
               | research? There is always something to take away, I don't
               | care about medical research, it is my right to have my
               | medical data not shared with researchers, if someone else
               | wants, then it's their right, I don't see why the default
               | has to be to take away
        
               | RandomLensman wrote:
               | When using public healthcare resources and anonymized
               | data?
        
         | dizzydes wrote:
         | This should absolutely be done everywhere.
         | 
         | It will exponentially reduce time to cures for various
         | diseases. The amount of red tape in academia and pharma to do
         | simple data studies is wild...
        
           | chopin wrote:
           | My medical data is affected and I can't disagree more. As
           | well pharma is not interested in finding cures, for obvious
           | reasons. I am getting all the downsides with no of the
           | upsides.
        
         | cjblomqvist wrote:
         | Sweden is usually ranking vet high on health care, both in
         | results and research/innovation. One big reason for this is
         | that we very early on gathered a lot of medical statistics on
         | the population through the "health ministry", which have later
         | been used in research. All this have fostered and cultivated
         | innovation. The biggest victory however is the benefit of the
         | results it had brought the population (and the world).
         | 
         | If done with care this can have a big impact! Very exciting
         | Germany is doing this!
        
           | rcbdev wrote:
           | When it comes to digitalization and privacy in Germany, no
           | good intention goes unpunished.
        
         | peteradio wrote:
         | Doesn't sound anonymous if it can be trivial unmasked. Sounds
         | like the setup for one of the most egregious medical leaks of
         | all time. Germany pwned.
        
           | V__ wrote:
           | It can't be trivially unmasked. If approved researchers get
           | controlled access to the data with oversight, but the data
           | itself isn't shared with the companies.
        
             | Lichtso wrote:
             | There is no such thing. Information is not a physical good
             | that you can store in a safe. Access to it implies sharing
             | it. At best what you can do is an API limit so that the
             | thing is not immediately copied in its entirety. But then
             | again, what possible statistical insights could you gain
             | with only a small fraction?
        
               | V__ wrote:
               | They get access to servers and/or data centers where they
               | can run their analysis. Its trivial to control for data
               | egress in such a scenario.
        
               | chopin wrote:
               | None of this is mentioned in that law. The worst thing
               | that can happen is getting excluded from the data for
               | some time.
        
         | lifestyleguru wrote:
         | Next thing you see is letter from _Rundfunkbeitrag_ suggesting
         | to pay for the whole year in advance because your cancer doesn
         | 't have good prognosis. Nothing personal or fraudulent you
         | know... it will be _convenient_.
        
           | shankr wrote:
           | I don't think people understood the joke since they might not
           | know what Rundfunkbeitrag is!
           | 
           | Everyone outside of German has to face death and taxes. In
           | Germany you face death, taxes and Rundfunkbeitrag.
        
       | jug wrote:
       | This might be good strategically from the perspective of EU
       | companies where the physical location of operations can matter a
       | lot depending on your field of business, e.g. NIS 2 Directive for
       | energy companies and other sensitive infrastructure.
       | 
       | But they'll face competition too of course! I can't wait to see
       | more development from European actors and projects like Mistral,
       | TrustLLM, and also GPT-SW3 for the Nordics! There's much in
       | motion on the European stage right now.
        
         | schleck8 wrote:
         | They don't face much competition for datacenter locations in
         | Europe. Germany has a really good location being relatively
         | centered to the continent depending on the city, and DE CIX as
         | a gigantic internet exchange. Most datacenters are located
         | around that exchange. The only two locations that come close to
         | Frankfurt am Main in datacenter count to my knowledge are Paris
         | and Amsterdam, but neither has that geographical advantage for
         | latency.
        
           | lima wrote:
           | It goes both ways, of sorts - DE-CIX is also a consequence of
           | all the large DCs being there :-)
           | 
           | Interestingly, Tier 1 transit pricing is increasingly
           | competitive and DE-CIX access is more expensive (relatively
           | speaking) in recent years.
        
       | dalex00 wrote:
       | Conspiracy view... Maybe just an indirect bribe so German
       | government votes in favour for the tech giant on EU level laws...
        
         | lifestyleguru wrote:
         | "Legal bribes" with dedicated budgets and departments at
         | corporations are absolutely a thing (lookup Siemens), only in
         | Europe we avoid the word "lobbying". It's not conspiracy at
         | all.
        
           | rcbdev wrote:
           | "Kickbacks" is the term used internally at Siemens for this
           | modus. They only document it well for their CEE subsidiaries
           | but the fish rots at the head.
        
       | supergirl wrote:
       | hard to understand what exactly they are investing in. just
       | building a data center to suck up the green energy is not such a
       | great deal for germany
        
       | lencastre wrote:
       | Something something Dreiundzwanzig und Ich.
        
         | ladyanita22 wrote:
         | care to explain?
        
           | andsoitis wrote:
           | 23andme
           | 
           | (dreiundzwanzig und mich)
        
             | Towaway69 wrote:
             | Didn't they have a recent data leak?
        
               | Hendrikto wrote:
               | I think that was OP's point: Gathering such data in a
               | centralized place is inherently risky.
        
         | ruszki wrote:
         | Are there countries which have universal healthcare, and health
         | care data is not stored already at a centralized place? This is
         | not new at all. At least definitely not in Europe.
        
           | lucianbr wrote:
           | Romania has universal healthcare, if pathetic, and health
           | care data is likely not stored at all, and in any case not at
           | a centralized place. And we're definitely in Europe, the EU
           | even.
           | 
           | Admittedly, this may be a bit besides the point. Still, I
           | think the universality of your assertion is based mostly on
           | thinking that the world is made only of a handful of
           | "important" countries.
        
       | Lichtso wrote:
       | Germany had many big external investment + government subvention
       | projects involving factories, data centers etc. announced in the
       | recent years. None of them materialized and they got canceled
       | because of the German balanced budget amendment [0].
       | 
       | [0]: https://de.wikipedia.org/wiki/Schuldenbremse_(Deutschland)
        
       | fahrradflucht wrote:
       | What exactly does it mean to invest 3.2BEUR in Germany? Does it
       | mean this is actually spend in Germany - as in for goods and
       | services produced in Germany, or does it mean they order an
       | astonishing amount of GPUs at Nvidia and put them into the
       | Frankfurt region because that's just one of the most popular
       | regions latency wise to serve Europe?
        
         | fsflover wrote:
         | https://news.ycombinator.com/item?id=39411061
        
       | m3kw9 wrote:
       | MS need its own AGI strategy as they ain't getting it from OpenAI
       | from that 10b investment
        
         | aleph_minus_one wrote:
         | > MS need its own AGI strategy as they ain't getting it from
         | OpenAI from that 10b investment
         | 
         | Microsoft will neither get AGI from their own nor the OpenAI
         | investment. The whole story of AGI is just a nice science-
         | fiction story marketing pitch to relieve investors of their
         | money. :-)
        
       | charles_f wrote:
       | > double the capacity of its AI and data centre infrastructure in
       | the country and expand its training programmes,
       | 
       | So installing GPUs in the existing German Azure datacenters
       | (likely most of the money), and spending some of the time of
       | their existing field teams to train customers to use it.
       | 
       | I think the "bet" is a bit emphatic there, Germany has had
       | protective laws for their data for a long time, which is why
       | they've had local datacenters for a long time.
       | 
       | It's a logical place to start massive deployment of GPUs in
       | Europe if you don't want to exclude its largest economy from the
       | party
        
         | alephnerd wrote:
         | Microsoft also has a Privacy Shield re-certification coming up
         | this year [0].
         | 
         | [0] -
         | https://www.privacyshield.gov/ps/participant?id=a2zt0000000K...
        
       | aj7 wrote:
       | Is Germany being used for development or as a database?
       | 
       | I have reservations about Germany's 9-5/work-life balance culture
       | being compatible with high performance in development.
        
       | whalesalad wrote:
       | I thought Germany was famously an OSS leader? Thought all govt
       | machines ran Linux. Maybe it's just certain municipalities.
        
         | undebuggable wrote:
         | Someone somewhere is using WSL. Was enough to tick the "OSS"
         | checkbox.
        
         | Krasnol wrote:
         | There is an interesting story on this topic:
         | https://itsfoss.com/munich-linux-failure/
        
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       (page generated 2024-02-17 23:01 UTC)