SoftBank, OpenAI team up to build AI data centre in Japan: report

Japanese technology investment and management multinational, SoftBank Group Corp, is planning a big splash into the business of artificial intelligence with billions of dollars in data centre investments, according to media reports.

Minato, Tokyo-based SoftBank has bought a closed LCD panel plant of TV maker Sharp in Osaka, Japan, for about 100 billion yen ($677.05 million), which it plans to develop into an artificial intelligence data centre, in collaboration with OpenAI, the US-based developer of ChatGPT, the Nikkei newspaper ed on Friday.

SoftBank plans to use part of the land at Sharp’s closed LCD factory to build its own AI facility in Japan, in strategic partnership with OpenAI or other tech companies.

Reports said SoftBank and OpenAI have also formed a joint venture called SB OpenAI Japan for operating the data centre. The joint venture will train models using clients’ data collected through marketing and other activities. The JV will then sell customised AI models to clients, says the Nikkei report. 

This is part of a joint effort to commercialise OpenAI’s AI models. SoftBank and OpenAI had earlier floated a collaboration in Japan to deploy advanced enterprise AI called ‘Cristal Intelligence.’ This also needs huge data centre capacity for training and developing AI models.

OpenAI will, reportedly, leverage the GPUs at the Sakai plant to bring its AI foundational models to the Japanese market. The data center will expand the scope of the collaboration.

SoftBank is reportedly investing as much as $25 billion in SB OpenAI JAPAN at a valuation of nearly $300 billion. 

SoftBank plans to commence operations of the joint venture in 2026.