SoftBank's Son, OpenAI's Altman to unveil Japan AI plans
SoftBank Group Corp’s founder Masayoshi Son is teaming up with Open AI chief Sam Altman in a global effort to promote investment in artificial intelligence (AI) infrastructure. The two will be joined by Arm Holdings Plc CEO Rene Haas and Junichi Miyakawa, head of SoftBank’s telecom arm, in an event named “Transforming Business through AI” in Tokyo.
The aim of the event is to garner support from Japanese companies to develop data centers, power plants, and other hardware essential for AI advancements. Son and Altman are also scheduled to meet with Prime Minister Shigeru Ishiba to discuss their plans.
Partnerships and Projects
SoftBank, in collaboration with OpenAI, Oracle Corp, and MGX backed by Abu Dhabi, is embarking on a multi-billion-dollar initiative known as the Stargate Project. This project aims to construct data centers and infrastructure in the US to support the ChatGPT creator. With an initial investment of US$100 billion and a target of at least US$500 billion over the next four years, the project is set to enhance computing capabilities significantly.
Japan, having missed out on the early growth phases of the Internet, is determined to not fall behind in the AI revolution. Son emphasized the need for the country to progress swiftly in this field. However, Japan faces challenges such as high energy costs due to imported oil and gas, coupled with public concerns regarding nuclear power following the Fukushima disaster in 2011.
Market Impact
Despite the ambitious plans, SoftBank's shares saw a decline of up to 2.5% in Tokyo, with credit default swaps widening amid doubts about the viability of the Stargate project. This has raised concerns about the financial risks associated with the initiative.
Arm and SoftBank’s telecom arm play pivotal roles in Son’s AI ambitions. Arm’s chip technology complements Nvidia Corp’s AI accelerators, while SoftBank’s telecom arm has strong ties across the Japanese corporate landscape.
Son has been vocal about the importance of swift AI adoption, cautioning that those who lag behind will struggle to keep up with the evolving technology landscape.
SoftBank's telecom arm, a major player in Japan’s wireless market, has collaborated with Microsoft Corp to introduce OpenAI services in the country. Additionally, the firm is developing its own Japanese language chatbot and holds stakes in PayPay, Line messaging app, and Yahoo Japan.
For further reading
For further reading, check out OpenAI releases AI agent designed to act like a research analyst.
