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Microsoft MSFT.O said on Friday it will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to develop artificial intelligence infrastructure and strengthen cybersecurity cooperation with the government.
The investment includes training 1 million engineers and developers by 2030, Microsoft said, which was revealed during a visit to Tokyo by Vice President and Chairman Brad Smith. In a statement, the company said the plan aligns with Prime Minister Sanae Takaichi’s goal of driving growth through advanced and strategic technologies, while preserving national security.
Microsoft will work with domestic companies such as SoftBank 9434.T and Sakura Internet 3778.T to increase AI computing capacity in Japan, allowing businesses and government agencies to keep sensitive data in the country while accessing Microsoft Azure services, the company said. It will also deepen cooperation with Japanese authorities on sharing information related to cyber threats and crime prevention.
AI adoption in Japan has accelerated since 2024, with about one in five working-age people using generative AI tools, Microsoft said, citing its own data.
Japan is expected to have a shortage of more than 3 million AI and robotics workers by 2040, according to government estimates.
