Sakura Internet Surges 20% on Microsoft’s $10 Billion AI Investment with SoftBank

Shares of Sakura Internet surged as much as 20.2% on Friday following an announcement that Microsoft has initiated discussions with the Japanese cloud provider and SoftBank to bolster artificial intelligence infrastructure within Japan.

Microsoft revealed its commitment to invest $10 billion in Japan between 2026 and 2029. This substantial investment is earmarked for building out AI infrastructure, enhancing cybersecurity defenses, and crucially, upskilling one million engineers and developers by 2030.

Sakura Internet, renowned for its internet infrastructure services leveraging domestic data centers, and Japanese telecommunications giant SoftBank Corp. are set to be key partners in this endeavor. They will collaborate with Microsoft to deliver crucial AI computing resources, including much-needed graphics processing units (GPUs) strategically located within Japan.

This significant announcement was made during a high-profile visit to Japan by Microsoft Vice Chair and President Brad Smith, who held a meeting with Prime Minister Sanae Takaichi. The timing underscores the growing strategic importance of AI development in the region.

Smith highlighted that the investment is a direct response to the escalating demand for cloud and AI services in Japan. Citing Microsoft’s AI Diffusion Report, he noted that approximately one in five working-age individuals in Japan are already utilizing generative AI tools, a figure that surpasses the global average of about one in six. This indicates a strong domestic appetite for advanced AI solutions.

The strategic partnership is designed to facilitate localized data processing within Japan, thereby accelerating the development of advanced AI systems, including native large language models (LLMs). This focus on domestic AI development is crucial for national technological sovereignty and innovation.

Beyond the infrastructure build-out, SoftBank and Microsoft Japan are actively exploring a joint solution. This proposed offering would enable customers of Microsoft Azure, Microsoft’s cloud computing platform, to seamlessly access and leverage SoftBank’s robust AI computing capabilities. Such an integration would create a powerful, unified AI ecosystem for businesses operating in Japan.

The market reacted positively to these developments, with SoftBank Group shares edging up 0.22% in Friday trading. SoftBank Corp., the telecommunications arm, saw a more substantial gain of 1.02%, reflecting investor confidence in the company’s strategic role in the burgeoning AI landscape.

Further broadening its impact, Microsoft is also forging alliances with five other leading Japanese IT corporations. These include NTT Data Corp., NEC, Fujitsu, and Hitachi. This collective effort aims to achieve the ambitious goal of training one million AI professionals by the year 2030, a critical step in securing Japan’s future in the AI-driven global economy.