Hitachi Reveals Plans for Significant Acquisitions in AI and Green Energy Sector

Hitachi Ltd. is prepared to invest hundreds of millions of dollars in acquisitions, focusing on green energy and generative AI, with a cash reserve of around $6.2 billion. The company's previous large deals have been in energy and software, and it has formed partnerships with major AI players. Despite concerns over data security and resources, Hitachi aims to expand its AI capabilities and is training professionals in this field. The conglomerate also plans to sell its stake in an air-conditioning joint venture, aiming to value the venture at nearly $4 billion.

Hitachi Ltd., the renowned Japanese conglomerate, is making waves in the tech industry by investing heavily in acquisitions focusing on green energy and generative artificial intelligence (AI) [1]. With a cash reserve of around $6.2 billion, the company is poised to bolster its portfolio and strengthen its competitive position.

Tomomi Kato, Hitachi's CFO, shared that the company's recent acquisition strategy has been geared towards shedding non-core units and enhancing its balance sheet [1]. However, with the focus now shifting towards green energy and AI, Hitachi aims to make substantial investments in these areas.

In line with Hitachi's expansion plans, the company has already formed partnerships with major AI players like Microsoft [2]. Under their strategic alliance, Hitachi will embed Microsoft's flagship cloud and AI products into its Lumada solutions for various sectors, such as energy, mobility, manufacturing, and logistics [2]. This partnership aims to accelerate Hitachi's digital transformation and drive innovative digital solutions for better business and societal outcomes.

Despite concerns over data security and resources, Hitachi remains committed to expanding its AI capabilities [1]. The company is also investing in training professionals in this field to ensure a steady supply of skilled talent. One of the key areas where Hitachi expects to see significant returns from its AI investments is productivity enhancement [1].

Hitachi's shares have tripled over the past two years, giving it a market capitalization of ¥17 trillion [1]. With this financial muscle, the company is well-positioned to make strategic acquisitions and drive growth in the green energy and AI sectors.

References:
[1] Bloomberg. Hitachi is ready to spend big on AI, green energy, CFO says. (2023, March 15). https://news.bloomberglaw.com/business-and-practice/hitachi-is-ready-to-spend-big-on-ai-green-energy-cfo-says
[2] Yahoo Finance. Microsoft and Hitachi form strategic alliance with $3 billion investment. (2023, February 28). https://finance.yahoo.com/news/microsoft-msft-forges-billion-dollar-143700644.html