All eyes are on ASX tech shares after Alphabet Inc's (NASDAQ: GOOGL) Google CEO Sundar Pichai announced the Digital Future Initiative.
The initiative is a $1 billion, 5-year investment. It aims to strengthen Australia's digital infrastructure, develop its technology and talent, and address both local and global challenges.
The tech giant's boss also noted the initiative will see it partnering with other companies and bodies. Two such partnerships have already been confirmed.
The S&P/ASX All Technology Index (ASX: XTX) finished 0.13% higher on Tuesday.
Let's take a look at Google's $1 billion plan for Australia.
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Is Google looking to partner with ASX tech shares?
Google Maps was born in Australia and the nation has helped improve Chromebooks, various other Google-owned apps, and Fitbit.
Now, it will house some of Google's work on future technologies – potentially in partnership with ASX tech shares.
Google is looking to Australia to help develop its artificial intelligence (AI) and cloud computing technologies.
To do so, it will improve Australia's digital infrastructure. Google will also provide local talent with Google Research Australia – the company's first Australian research hub. Finally, it will look to create new technology partnerships.
Google's first partnership will be with none other than the CSIRO.
While it's not listed on the ASX, the CSIRO will be working with the tech giant to explore clean energy and protect the Great Barrier Reef. CSIRO CEO Dr Larry Marshall commented:
AI could contribute $20 trillion to the global economy in this decade, but Australia must choose carefully where we will focus.
Both CSIRO and Google have significant strengths in AI, but it will take a network of partners across Australia to turn that expertise into real solutions… Neither CSIRO nor Google can do this alone.
Google will also partner with Macquarie University to advance quantum computing.
The initiative was backed by Prime Minister Scott Morrison. He said it was a "$1 billion vote of confidence" in Australia's digital economic strategy:
Sundar and I have talked many, many times about my desire for Australia to be front and centre in the changes that are occurring…
In Australia, the estimates are that increased digitisation could add some $90 billion to our economy and create some 250,000 new jobs in the near future…
Our digital economy strategy is about Australia becoming the top 10 digital economy by 2030…
It is great private capital investors and entrepreneurs that actually will drive this change.
