Microsoft to invest $10 billion in Japan for AI, cybersecurity push

Microsoft said it will invest 1.6 trillion yen ($10 billion) in ​Japan between 2026 and 2029 to expand ‌artificial intelligence infrastructure and strengthen cybersecurity cooperation with the government.

The investment includes the training of 1 million ​engineers and developers by 2030, Microsoft ​said, which was unveiled during a visit to ⁠Tokyo by Vice Chair and President Brad ​Smith. In a statement, the company said the ​plan aligns with Prime Minister Sanae Takaichi’s goal to boost growth through advanced, strategic technologies while safeguarding national security.

Microsoft ​will work with domestic firms including SoftBank (9434.T), opens new tab and ​Sakura Internet (3778.T), opens new tab to expand Japan-based AI computing capacity, allowing ‌companies ⁠and government agencies to keep sensitive data within the country while accessing Microsoft Azure services, it said. It will also deepen cooperation with ​Japanese authorities ​on sharing intelligence ⁠related to cyber threats and crime prevention.

Japan’s adoption of AI has ​accelerated since 2024, with around one ​in ⁠five working-age people using generative AI tools, Microsoft said, citing its own data.

Japan faces a ⁠projected ​shortfall of more than 3 ​million AI and robotics workers by 2040, according to government ​estimates. Reuters