Microsoft Corp. announced plans to invest $10 billion in Japan to expand artificial intelligence and cybersecurity capabilities, marking one of the largest technology investments in the country by a U.S. company.

The investment plan includes a partnership with SoftBank Group Corp. to develop AI infrastructure and services. The announcement sent shares of Japanese technology companies higher, with Sakura Internet Co. jumping 20% on expectations of increased demand for data center and cloud services.

The investment reflects Microsoft's broader strategy to expand its AI operations globally as competition intensifies in the artificial intelligence sector. Japan represents a key market for AI development, with the country's government actively promoting digital transformation initiatives across industries.

The partnership with SoftBank, led by billionaire Masayoshi Son, combines Microsoft's cloud computing and AI capabilities with SoftBank's telecommunications infrastructure and local market expertise. The collaboration is expected to focus on both enterprise AI solutions and cybersecurity services for Japanese businesses and government agencies.

Microsoft's commitment comes as technology companies worldwide are making substantial investments in AI infrastructure to meet growing demand for machine learning and generative AI services. The Japan investment adds to Microsoft's global AI expansion efforts, which have included significant commitments in other international markets.