Microsoft (MSFT) Commits $10B to Japan AI Infrastructure with SoftBank and Sakura Internet Partnership

Shares of Sakura Internet rose 20.27% on Friday after Microsoft disclosed a major artificial intelligence investment plan for Japan, naming Sakura Internet as a key collaborator alongside SoftBank.

Microsoft’s Japan AI investment plan

Microsoft said it will invest $10 billion in Japan over four years as part of a broader Asia push to expand access to AI services. The company’s plan includes $10 billion for data centers and AI infrastructure through 2029, building on $2.9 billion previously announced.

Microsoft also confirmed it will deploy 1.6 trillion yen (about $10 billion) across Japan from 2026 to 2029. The allocation covers AI infrastructure development, cybersecurity collaboration, and a commitment to educate 1 million engineers and developers over the next six years.

Role of Sakura Internet and SoftBank

Sakura Internet, which operates a network of data centers across Japan, is expected to collaborate with SoftBank to provide AI computing capabilities under the alliance. The partnership includes graphics processing units (GPUs) located within Japan.

The setup is designed to allow corporations and government bodies to process confidential information domestically while still accessing Microsoft Azure cloud services. Microsoft and SoftBank Japan also discussed creating a combined solution so Azure users can access SoftBank’s AI computing infrastructure more seamlessly.

Market reaction

In Friday trading, SoftBank Group finished 0.22% higher, while SoftBank Corp. gained 1.02%.