SoftBank is advancing its ambitions to establish a significant AI operation in Japan, both independently and through strategic alliances, such as that with OpenAI. On Friday, the technology firm announced it will invest $676 million to acquire a factory that was previously operated by Sharp for the production of LCD panels, intending to convert it into an AI data center.
The acquisition agreement between SoftBank and Sharp encompasses both the land and facilities at the Sharp Sakai Plant located in Osaka, with a total price tag of 100 billion yen (approximately $676 million).
This acquisition marks a crucial initial step for SoftBank, as data centers are integral to the booming generative AI landscape: they are essential for model training and for delivering and managing AI services.
When inquired about whether this site is aligned with plans to commercialize OpenAI’s models in Japan, a SoftBank representative directed TechCrunch to their prior announcement, detailing a partnership with OpenAI for deploying “Cristal Intelligence,” an advanced enterprise AI, in Japan. OpenAI opted not to comment on the recent developments when approached.
OpenAI reportedly plans to introduce its foundational AI models into the Japanese market, utilizing GPU technology to cultivate models at the Sakai facility. The joint venture, SB OpenAI Japan, which merges SoftBank and OpenAI’s resources, aims to train models with data from clients’ marketing and various activities. This initiative will lead to the sale of tailored AI agents to clients, as outlined in a report by Nikkei.
SoftBank’s data center project highlights the expanding partnership between SoftBank and OpenAI.
The two tech entities announced their joint venture in Japan subsequent to OpenAI’s collaborations with SoftBank, Oracle, and others in establishing several AI data centers across the U.S. Furthermore, SoftBank is reportedly investing in OpenAI. Discussions have been ongoing for months, with indications that SoftBank might invest up to $25 billion in OpenAI, which is currently valued at nearly $300 billion; however, this fundraising initiative has yet to finalize or be officially disclosed.
SoftBank’s acquisition of the plant follows roughly 10 months after it signed a Memorandum of Understanding (MOU) to construct a substantial AI data center at Sharp’s former LCD production site.
Operations are anticipated to commence in 2026, with SoftBank projecting the LCD panel factory to offer ample power capacity for the AI data center, starting at approximately 150 megawatts and eventually scaling up to over 240 megawatts.
The Sakai facility will be SoftBank’s third data center; the company currently operates one in Tokyo and is constructing another in Hokkaido.
Compiled by Techarena.au.
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