Microsoft has unveiled an ambitious plan to invest $10 billion in Japan over the next three years, from 2026 to 2029. This investment is set to focus on building AI infrastructure, enhancing cybersecurity measures, and training 1 million engineers and developers by the year 2030.

In collaboration with Sakura Internet, known for its domestic data center services, and telecommunications powerhouse SoftBank Corp., Microsoft aims to deliver AI computing resources. This includes setting up graphics processing units within Japan, which will significantly bolster the country’s technological capabilities.

Brad Smith’s visit to Japan underscores Microsoft’s commitment to fostering innovation and technological advancement in partnership with Japanese firms, marking a new chapter in the global tech landscape.

The announcement came during a visit to Japan by Microsoft Vice Chair and President Brad Smith, who met Prime Minister Sanae Takaichi.

Smith said the investment comes as demand for cloud and AI services grows in Japan. Around one in five working-age people in the country use generative AI tools, compared with the global average of about one in six, according to Microsoft’s AI Diffusion Report.

The partnership will allow data to be processed in Japan and support the development of advanced AI systems such as domestic large language models, Microsoft said in a statement.

SoftBank and Microsoft Japan are also discussing a joint solution that would allow Microsoft Azure customers to use SoftBank’s AI computing platform.

Shares of Softbank Group were up 0.22% in Friday trade, while SoftBank Corp. rose 1.02%

Separately, Microsoft will partner with five other major Japanese IT companies, including NTT Data Corp., NEC, Fujitsu and Hitachi, to train 1 million AI professionals by 2030.