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

Microsoft said on Friday 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 announcement was made during a visit to Tokyo by Microsoft Vice Chair and President Brad Smith. The investment includes plans to train 1 million engineers and developers by 2030, as part of efforts to strengthen Japan’s digital workforce.

 

In a statement, Microsoft said the initiative aligns with Prime Minister Sanae Takaichi’s strategy to drive economic growth through advanced technologies while enhancing national security.

 

Partnerships and local infrastructure

 

Microsoft will collaborate with Japanese firms including SoftBank and Sakura Internet to expand domestic AI computing capacity. This will allow businesses and government agencies to store sensitive data within Japan while using Microsoft Azure services.

 

The company also plans to deepen cooperation with Japanese authorities on sharing intelligence related to cyber threats and crime prevention.

 

Rising AI adoption, talent gap

 

AI adoption in Japan has accelerated since 2024, with around one in five working-age individuals now using generative AI tools, according to Microsoft data.

 

However, Japan faces a significant talent shortage, with government estimates projecting a deficit of more than 3 million AI and robotics workers by 2040. The planned training initiative is aimed at addressing this gap while supporting the country’s broader digital transformation.

 

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