Japan's Sakura Internet soars 20% with Microsoft and SoftBank's $10bn AI initiative

Stock of Sakura Internet soared up to 20.2% on Friday following Microsoft's announcement about entering talks with the Japanese cloud firm and SoftBank to build artificial intelligence infrastructure in Japan.

Microsoft announced its intention to invest $10 billion in Japan from 2026 to 2029. The goals are to establish AI infrastructure, enhance cybersecurity measures, and train 1 million engineers and developers by 2030.

Sakura Internet, known for offering internet infrastructure services through local data centers, and the Japanese telecommunications leader SoftBank Corp. will collaborate with Microsoft to supply AI computing resources, which include graphics processing units housed in Japan.

This announcement was made during a visit to Japan by Brad Smith, Vice Chair and President of Microsoft, who also met with Prime Minister Sanae Takaichi.

Smith noted that their investment aligns with the increasing demand for cloud and AI services in Japan. 

According to Microsoft's AI Diffusion Report, approximately one in five working-age individuals in Japan are utilizing generative AI tools, compared with a global average of one in six.

The collaboration will enable data processing within Japan, aiding the creation of sophisticated AI systems like local large language models, Microsoft stated in an announcement.

SoftBank and Microsoft Japan are also exploring a unified solution, allowing Microsoft Azure users to access SoftBank's AI computing platform.

Softbank Group shares experienced a 0.22% increase in Friday's trading session, with SoftBank Corp. climbing by 1.02%

Additionally, Microsoft has plans to work with five other key Japanese IT firms, including NTT Data Corp., NEC, Fujitsu, and Hitachi, aiming to educate 1 million AI experts by 2030.