Today : Feb 04, 2025
Technology
04 February 2025

OpenAI And SoftBank Launch Japan AI Venture

The collaboration aims to market AI solutions for powerful corporate transformations across Japan.

TOKYO – A new chapter for artificial intelligence (AI) is being written as Japanese technology giant SoftBank Group and OpenAI announce their strategic partnership, solidifying their collaborative efforts with the launch of SB OpenAI Japan, a 50-50 joint venture aimed at marketing AI solutions to corporate clients across Japan.

At a press conference held on Monday, the two companies' chiefs—SoftBank's Masayoshi Son and OpenAI's Sam Altman—revealed their ambitious plans to leverage AI within SoftBank's ecosystem, which includes major subsidiaries like Arm and PayPay. Son stated, “This initiative will not only transform the way SoftBank Group operates but also revolutionize the way companies work in Japan and around the globe.”

OpenAI's role involves delivering its cutting-edge AI solutions, including the notable "Cristal intelligence," which is intended to automate tasks ranging from financial report generation to customer management. Over the next few years, SoftBank is committed to investing $3 billion annually to integrate this innovative AI technology across its various enterprises.

SoftBank has long been recognized as a bridge between American tech advancements and the Japanese market. This venture is part of the company’s broader ambition to bolster AI capabilities within Japan—a sentiment echoed by Son, who previously criticized local businesses for their slow adoption of technology. He compared non-adopting companies to “goldfish” lacking the ability to evolve.

The vast scope of SB OpenAI Japan will include hiring approximately 1,000 employees acquired from SoftBank to promote AI services to diverse sectors, including retail and automotive industries. According to Son, the countries worldwide must adopt AI technologies to keep pace with global advances, underscoring SoftBank's commitment to being at the forefront of this technological revolution.

Adding to their collaboration, SoftBank and OpenAI are said to be discussing potential investments amounting to $15 billion to $25 billion from SoftBank. This could align with OpenAI’s larger funding round, anticipated to raise up to $40 billion, which would value the AI company at around $300 billion.

Sector-wide expectations for AI implementations grow as projects like Stargate—a joint venture with partners including OpenAI and Oracle—seek to establish AI infrastructure across the United States. The scale of Stargate is significant, with up to $500 billion planned for development over several years.

Despite the competitive pressures, including even cheaper AI models from companies like Chinese startup DeepSeek, Masayoshi Son remains confident about the value of large-scale AI operations. He noted at the event, “If more is really more, then we should do it big.” Altman added to his commentary, emphasizing the increasing demand for computational power and sophisticated AI frameworks. This echoes their shared vision of what they describe as the technology's revolutionary potential.

Both leaders believe SB OpenAI Japan's initiatives are just the beginning. They are focusing on streamlining operational efficiencies and driving innovations across SoftBank’s suite of services, catering particularly to large enterprises. Utilizing OpenAI’s advanced resources will grant SoftBank priority access to cutting-edge AI models, giving them unprecedented competitive advantages.

At the event, Son and Altman were joined by key figures from SoftBank, including ARM Holdings CEO Rene Haas and Junichi Miyakawa, head of SoftBank’s domestic telecom. Their appearances highlight the interconnected roles these leaders play within the larger AI objectives at SoftBank.

With the collaboration underway, the tech community watches closely as SB OpenAI Japan embarks on its mission to transform the corporate environment through innovative AI applications, fundamentally redefining Japan’s business landscapes.