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Microsoft to invest $10 billion in Japan for AI and cyber defence expansion

By Thomson Reuters Apr 2, 2026 | 10:37 PM

TOKYO, April 3 (Reuters) – Microsoft on Friday 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 and Sakura Internet 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.

(Reporting by Chang-Ran Kim; Editing by ​Thomas Derpinghaus)