Shares of Sakura Internet experienced a significant surge, climbing as much as 20.2% on Friday following Microsoft’s announcement of new discussions with the Japanese cloud company and telecommunications giant SoftBank. The tech giant revealed plans to invest $10 billion in Japan between 2026 and 2029, aimed at developing artificial intelligence infrastructure, bolstering cybersecurity measures, and training an impressive 1 million engineers and developers by 2030.
The partnership with Sakura Internet, which specializes in internet infrastructure services utilizing domestic data centers, will focus on delivering AI computing resources, including pivotal graphics processing units, within Japan. This major announcement coincided with the visit of Microsoft Vice Chair and President Brad Smith to Tokyo, where he met with Prime Minister Sanae Takaichi to discuss the venture.
During his visit, Smith emphasized the surge in demand for cloud and AI services within Japan. According to Microsoft’s AI Diffusion Report, approximately one in five working-age individuals in Japan actively utilize generative AI tools, surpassing the global average of one in six.
The collaboration will facilitate data processing within the country and advance the development of complex AI systems, such as large language models, Microsoft’s statement outlined. Furthermore, discussions are underway for a joint solution that would allow Microsoft Azure customers to tap into SoftBank’s AI computing platform.
In the wake of this announcement, SoftBank Group’s shares rose by 0.22%, while SoftBank Corp. saw an increase of 1.02%.
In addition to its partnership with Sakura Internet and SoftBank, Microsoft intends to collaborate with five prominent Japanese IT firms, including NTT Data Corp., NEC, Fujitsu, and Hitachi, aiming to cultivate a robust workforce by training 1 million AI professionals by 2030. This strategic investment highlights Microsoft’s commitment to enhancing technological capabilities in Japan and fostering a new generation of skilled tech professionals.
