Shares of Japanese firm Sakura Internet jumped over 20% Friday after Microsoft said it has begun discussions with the cloud company and SoftBank to develop artificial intelligence infrastructure in Japan.
Sakura Internet stock price surged as much as 20.27% to 2,967 JPY.
Microsoft said it will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to expand artificial intelligence infrastructure and deepen cybersecurity cooperation with the government.
The US technology giant added that it will collaborate with domestic firms, including SoftBank and Sakura Internet, to expand Japan-based AI computing capacity. This will enable companies and government agencies to keep sensitive data within the country while accessing Microsoft Azure services, Reuters reported.
The investment plan also includes training 1 million engineers and developers by 2030. The initiative was unveiled during Vice Chair and President Brad Smith’s visit to Tokyo. In a statement, Microsoft said the move aligns with Prime Minister Sanae Takaichi’s objective of driving growth through advanced strategic technologies while strengthening national security.
Sakura Internet, which operates domestic data centres, along with telecommunications major SoftBank Corp., will partner with Microsoft to provide AI computing resources, including locally hosted graphics processing units (GPUs).
Sakura Internet Stock Price Performance
Sakura Internet share price has gained over 3% in one month, and has rallied 7% on a year-to-date (YTD) basis. The Japanese stock has declined 16% in one year, but has delivered multibagger returns of 273% over the past five years.
(With inputs from Reuters)
