Key Highlights
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- Sakura Internet shares rocketed 20.27% following Microsoft’s announcement of a $10 billion AI commitment in Japan
- The tech giant will deploy 1.6 trillion yen from 2026 through 2029 focusing on AI infrastructure and cybersecurity initiatives
- Microsoft has selected Sakura Internet and SoftBank as strategic partners to deliver Japan-based AI computing capabilities, including GPU resources
- The company has set an ambitious goal to upskill 1 million Japanese engineers and developers before 2030
- SoftBank Group stock climbed 0.22% while SoftBank Corp. advanced 1.02% following the announcement
Shares of Sakura Internet skyrocketed 20.27% during Friday’s trading session after Microsoft revealed an extensive AI expansion strategy for Japan, designating the cloud services provider as a critical partner alongside telecommunications giant SoftBank.
The Redmond-based technology leader confirmed plans to deploy 1.6 trillion yen — approximately $10 billion — across Japan throughout the 2026-2029 period. This substantial commitment encompasses AI infrastructure development, collaborative cybersecurity efforts, and an initiative to provide AI training to 1 million engineers and developers by decade’s end.
Brad Smith, Microsoft’s Vice Chair and President, revealed these plans during a Tokyo visit, where he held discussions with Prime Minister Sanae Takaichi.
Sakura Internet, which operates a network of data facilities throughout Japan, will collaborate with SoftBank to deliver AI computational power under this strategic alliance. The partnership specifically includes graphics processing units physically stationed within Japanese borders.
This infrastructure arrangement enables corporations and government entities to handle confidential information domestically while maintaining access to Microsoft Azure cloud services.
Additionally, SoftBank and Microsoft Japan are exploring a collaborative offering that would enable Azure subscribers to access SoftBank’s AI computing infrastructure seamlessly.
SoftBank Group finished Friday’s session up 0.22%, while SoftBank Corp. posted gains of 1.02%.
The Strategic Focus on Japan
Microsoft highlighted Japan’s robust adoption of artificial intelligence as a key motivator behind this investment. Data from Microsoft’s AI Diffusion Report indicates that approximately 20% of Japan’s working-age population currently utilizes generative AI applications, exceeding the global average of roughly 16%.
Smith emphasized that cloud computing and AI service demand continues accelerating across Japan, noting the investment supports Prime Minister Takaichi’s strategic vision to leverage cutting-edge technology for economic expansion and national security objectives.
Extended Collaboration Framework
In addition to Sakura and SoftBank, Microsoft announced partnerships with five additional prominent Japanese technology corporations to achieve its objective of training 1 million AI specialists by 2030. These partners encompass NTT Data Corp., NEC, Fujitsu, and Hitachi.
The collaborative framework will also facilitate the creation of indigenous large language models tailored for the Japanese market.
Microsoft’s cybersecurity collaboration with Japan includes provisions for exchanging intelligence on cyber threats and coordinating crime prevention efforts with Japanese government agencies.
Sakura Internet shares concluded trading at 2,967.00 JPY, marking a 500.00 JPY increase for the session.
