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Shares of Sakura Internet jumped over 20% on Friday following Microsoft’s announcement of a major AI initiative in Japan. The cloud and technology giant plans to invest $10 billion between 2026 and 2029 to develop AI infrastructure, bolster cybersecurity, and support workforce training for 1 million engineers and developers by 2030.

The investment forms part of a broader collaboration with SoftBank and Sakura Internet, leveraging domestic data centers and computing resources to process AI workloads within Japan. The partnership will include high-performance graphics processing units and other AI-focused infrastructure to enable the development of advanced systems, including Japan-specific large language models.

Microsoft Vice Chair and President Brad Smith emphasized that the move responds to growing domestic demand for AI services. According to Microsoft’s AI Diffusion Report, roughly 20% of Japan’s working-age population currently uses generative AI tools, slightly above the global average of 16%. By processing data locally, the collaboration ensures compliance with domestic regulations and strengthens Japan’s position in the global AI ecosystem.

SoftBank Corp. and Microsoft Japan are exploring joint solutions to integrate SoftBank’s AI computing platform with Microsoft Azure, expanding cloud capabilities for enterprise clients. While Sakura Internet’s shares surged dramatically, SoftBank Group saw a modest 0.22% gain, and SoftBank Corp. rose 1.02% on Friday trading.

In addition to this partnership, Microsoft is working with five other major Japanese IT companies—including NTT Data, NEC, Fujitsu, and Hitachi—to train a million AI professionals by 2030. This workforce initiative aims to address a critical talent gap in Japan’s rapidly expanding AI sector while supporting the nation’s broader digital transformation goals.

The announcement underscores a strategic push by international tech firms to strengthen AI infrastructure in Asia, highlighting Japan as a key hub for next-generation technology and innovation. Analysts note that Sakura Internet, as a domestic provider of cloud and internet services, stands to benefit significantly from both increased demand for AI capacity and enhanced visibility in the Japanese tech landscape.

This investment also signals a wider trend of U.S. and global tech companies partnering with local players to meet regulatory requirements, ensure data sovereignty, and cultivate highly skilled AI workforces, positioning Japan as a leader in generative AI development for both domestic and international markets.