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SoftBank, OpenAI unveil Japan AI joint venture to power corporate customers

by admin February 3, 2025
February 3, 2025
SoftBank, OpenAI unveil Japan AI joint venture to power corporate customers

SoftBank Group is deepening its artificial intelligence (AI) ambitions through a new $3 billion deal with OpenAI, reinforcing its long-term commitment to AI-driven enterprise solutions.

The newly formed joint venture, SB OpenAI Japan, will be co-owned by OpenAI and a SoftBank-affiliated entity, marking one of the largest AI service collaborations in Japan.

The companies will develop and market “Cristal Intelligence,” an advanced enterprise AI solution. The platform will securely integrate enterprise systems and data, offering customized AI capabilities tailored to individual companies.

This partnership positions SoftBank as a key player in AI infrastructure development, leveraging OpenAI’s technology across its group companies to enhance automation, business intelligence, and corporate AI adoption.

The deal also aligns with SoftBank’s broader strategy, including its $15 billion investment in Stargate, a US-based AI project with OpenAI and Oracle, designed to expand AI capabilities.

As Japan faces increasing competition in AI development from global tech firms, this venture highlights SoftBank’s effort to position itself at the forefront of AI innovation.

Impact on corporate Japan

SoftBank’s telecom arm, SoftBank Corp., will lead the venture, hiring 1,000 employees to market OpenAI’s products across various industries, including automakers and retailers.

Additionally, SoftBank group companies, such as LY Corp. and PayPay Corp., are expected to collectively utilize OpenAI’s tools, with annual spending projected at approximately $3 billion.

Japanese corporations, long regarded as conservative in tech adoption, may now have a streamlined path to incorporating OpenAI’s models into their workflows, from customer service automation to AI-driven analytics.

Sam Altman, CEO of OpenAI, said:

“This partnership with SoftBank will accelerate our vision for bringing transformative AI to some of the world’s most influential companies—starting with Japan.”

With SoftBank’s telecom infrastructure and OpenAI’s expertise, businesses could gain access to AI-powered tools optimised for language processing, data analysis, and automation.

This could be particularly beneficial for finance, manufacturing, and logistics—sectors where Japan has traditionally excelled but has struggled with AI integration due to language and regulatory barriers.

Beyond the domestic market, SoftBank’s AI push aligns with its global ambitions. The company has already committed $15 billion to Stargate, a US-based project aimed at building AI infrastructure.

With SB OpenAI Japan, SoftBank is not only betting on AI’s future but also reinforcing its influence in shaping AI adoption both in Japan and abroad.

Softbank’s AI ambitions

SoftBank’s deepening ties with OpenAI reflect a broader shift in AI investment strategies, with the Japanese conglomerate moving beyond its traditional role as a venture capital powerhouse.

Having previously scaled back its tech investments due to valuation declines, SoftBank is now making a calculated move into AI infrastructure, focusing on high-value, long-term projects rather than speculative tech bets.

The joint venture comes amid growing global competition in AI development. China’s AI giants, including Baidu and Alibaba and newly launched DeepSeek, are aggressively pushing their own models, while the US remains home to industry leaders like OpenAI and Google Gemini.

By aligning itself with OpenAI, SoftBank is positioning Japan as a major AI hub while ensuring that domestic businesses have direct access to cutting-edge AI technologies.

Moreover, SoftBank’s expanding AI footprint could influence its portfolio companies, including Arm Holdings, which has seen increased demand for AI-related semiconductor solutions.

The synergy between AI software (through OpenAI) and AI hardware (via Arm) could provide SoftBank with a strategic advantage in the evolving AI landscape.

With Masayoshi Son’s renewed focus on AI, SoftBank’s latest move signals a long-term commitment to AI-powered corporate services.

The post SoftBank, OpenAI unveil Japan AI joint venture to power corporate customers appeared first on Invezz

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