Microsoft Corp. (NASDAQ:MSFT) will invest 1.6 trillion yen ($10 billion) in Japan through 2029 to expand AI infrastructure and cybersecurity cooperation, as the country faces a projected shortfall of more than 3 million AI workers by 2040, the company announced Friday.

The investment will be used to expand AI infrastructure and strengthen cybersecurity cooperation with the Japanese government, Reuters reported. As part of this initiative, Microsoft plans to train 1 million engineers and developers by 2030.

This announcement was made during a visit to Tokyo by Microsoft’s Vice Chair and President, Brad Smith.

The investment aligns with Japan’s Prime Minister Sanae Takaichi‘s vision to drive growth through advanced technologies while ensuring national security.

Local Partners, Sovereign Cloud Access

According to the report, Microsoft will collaborate with local companies such as SoftBank Group (OTC:SFTBY) (OTC:SFTBF) and Sakura Internet Inc (OTC:SKRUF) to expand AI computing capacity in Japan. This will enable companies and government agencies to store sensitive data within the country while accessing Microsoft Azure services.

The company will also deepen intelligence-sharing with Japanese authorities on cyber threats and crime prevention.

According to Microsoft, Japan’s adoption of AI has accelerated since 2024, with approximately one in five working-age individuals using generative AI tools. The government estimates a shortfall of over 3 million AI and robotics workers by 2040.

Asia-Pacific Dominance, In-House AI Push

The Japan commitment comes after the American tech giant recently pledged $5.5 billion in Singapore and $1 billion in Thailand for cloud and AI infrastructure — signaling a broader Microsoft push to anchor AI dominance across Asia-Pacific.

The recent Japan commitment also builds on Microsoft’s previous $2.9 billion investment in Japanese data centers announced in 2024

A day before the Japan announcement, Microsoft unveiled a new lineup of in-house MAI models, including speech, transcription and image-generation tools, aimed at improving speed and efficiency while lowering enterprise AI costs.

Trading Metrics

Microsoft has a market capitalization of $2.77 trillion, with a 52-week high of $555.45 and a 52-week low of $344.79.

Over the past 12 months, the large-cap stock has dropped 21.03%.

Price Action: According to Benzinga Pro data, MSFT closed the regular session at $373.46, up 1.11%.

With a Quality score of 93.66, Benzinga’s Edge Stock Rankings indicate that MSFT has a negative price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.