Japan's Sakura Internet jumps 20% as Microsoft plans $10 billion AI push with SoftBank

Shares of Sakura Internet experienced a remarkable surge, climbing as much as 20.2% on Friday following Microsoft's announcement regarding its collaboration with the Japanese cloud service provider and SoftBank. Microsoft revealed its ambitious plan to invest $10 billion in Japan between 2026 and 2029, aimed at developing artificial intelligence infrastructure, enhancing cybersecurity measures, and training one million engineers and developers by 2030. Sakura Internet, renowned for its internet infrastructure services utilizing domestic data centers, is set to partner with SoftBank and Microsoft to deliver AI computing resources. This includes the deployment of graphics processing units (GPUs) within Japan. The announcement coincided with a visit by Microsoft Vice Chair and President Brad Smith, who held discussions with Prime Minister Sanae Takaichi. Smith emphasized that this investment is crucial as the demand for cloud and AI services continues to rise in Japan. According to Microsoft's AI Diffusion Report, approximately one in five working-age individuals in Japan are utilizing generative AI tools, surpassing the global average of about one in six. This strategic partnership will facilitate data processing within Japan and aid in the advancement of sophisticated AI systems, including domestic large language models. Additionally, SoftBank and Microsoft Japan are exploring a collaborative solution that would enable Microsoft Azure users to access SoftBank's AI computing platform. On the stock market, SoftBank Group saw a slight increase of 0.22% on Friday, while SoftBank Corp. rose by 1.02%. In a separate initiative, Microsoft is also teaming up with five prominent Japanese IT firms, such as NTT Data Corp., NEC, Fujitsu, and Hitachi, with the goal of training one million AI professionals by the end of the decade.