Microsoft to Invest $10B in AI and Cybersecurity in Japan

Microsoft has confirmed a $10 billion funding package for Japan -- the latest sizable investment in its concerted effort to establish itself as a key player in the rollout of AI services in Asia.

The investment was disclosed following a Friday meeting in Tokyo between company president and vice chairman Brad Smith and Japanese Prime Minister Sanae Takaichi, and was confirmed in a statement on the Microsoft website.

The sum is in addition to Microsoft's previous $2.9 billion investment in Japan in April 2024 and will be spent over the next four years.

Among the key elements of the latest package is an agreement with local companies Sakura Internet and SoftBank to develop cloud and AI infrastructure, with the Japanese companies offering GPU-based compute through Microsoft’s Azure cloud. Sakura’s stock price rose sharply immediately after the announcement.

The agreement will ensure data processing remains in Japan, which Microsoft said will provide an important foundation in encouraging the development of Japan’s own large language models.

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Also unveiled was Microsoft's undertaking to expand its existing collaboration with the country's National Police Agency to strengthen Japan’s national cybersecurity.

All this was accompanied by a pledge to work with companies, including Fujitsu, Hitachi, NEC, NTT Data, and SoftBank, to train a million AI engineers and developers in Japan by 2030.

Microsoft’s previous funding in Japan has already enabled more than 3.4 million people to develop AI skills, the vendor said, but greater momentum is needed, as the country is expected to face a shortfall of 3.2 million AI and robotics workers by 2040.

According to Smith, the funding illustrates his company’s commitment to Japan. “We are bringing the world’s best technology, building secure and reliable infrastructure on Japan’s terms, and helping equip its workforce to accelerate productivity and innovation across its economy,” he said in a statement.

“We welcome the plan because it will raise Japan’s growth potential, deal with the issue of data sovereignty and boost human resources,” Takaichi said in the statement.

The Tokyo visit continued a busy period for Smith, who over the past week has also visited Thailand and Singapore to reveal new AI investment packages for each.

In Bangkok, he met with Prime Minister Anutin Charnvirakul and revealed that Microsoft would provide $1 billion toward building out Thailand’s AI and cloud infrastructure.

Smith then moved on to Singapore, where he confirmed a $5.5 billion investment to ramp up AI capabilities in the city-state.

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About the Author

Contributing Writer

Graham Hope has worked in automotive journalism in the U.K. for 26 years, including spells as editor of leading consumer news website and weekly Auto Express and respected buying guide CarBuyer.