Microsoft's $10 Billion Japan Bet Lifts Local Cloud Partner

Sakura Internet's stock price jumped over 20% following a major announcement from Microsoft. The U.S. tech giant revealed plans to invest $10 billion in Japan from 2026 to 2029, with a focus on constructing new artificial intelligence infrastructure. A central part of this initiative is a new partnership with Sakura Internet and SoftBank Corp.

The collaboration aims to establish significant AI computing resources within Japan's borders, utilizing domestic data centers and graphics processing units. Microsoft Vice Chair Brad Smith, who announced the plan during a meeting with Japanese officials, pointed to the country's rapid adoption of generative AI tools as a key driver for the investment.

This move addresses a growing need for localized data processing. By building infrastructure in Japan, the partnership will support the creation of advanced, homegrown AI systems, including large language models developed specifically for the Japanese market. Microsoft and SoftBank are also exploring a joint offering that would give Azure clients direct access to SoftBank's AI computing platform.

While Sakura Internet saw the most dramatic market reaction, shares of SoftBank Corp. also edged higher. The broader strategy includes a goal to train one million Japanese engineers and developers in AI skills by 2030, alongside significant investments in cybersecurity.

Source: CNBC