SoftBank Acquires $676M Sharp Facility to Fuel OpenAI Collaboration in Japan

SoftBank is making significant strides in its pursuit to establish a robust artificial intelligence (AI) operation in Japan. The tech giant has recently announced a strategic investment of $676 million to transform a former Sharp factory into a state-of-the-art AI data center, emphasizing the growing importance of AI infrastructure in the tech industry.

SoftBank’s Major Investment in AI Infrastructure

On Friday, SoftBank confirmed the acquisition of the Sharp Sakai Plant in Osaka, which will be converted into a dedicated AI data center. This acquisition includes both land and buildings for a total cost of 100 billion yen (approximately $676 million).

The Importance of Data Centers for AI Development

Data centers play a crucial role in the burgeoning field of generative AI. They provide the necessary capacity to:

• Train AI models
• Provision services efficiently
• Support extensive data processing

SoftBank’s data center initiative is a key step in meeting the demands of AI technologies, particularly as the company collaborates with OpenAI to enhance AI offerings in Japan.

Collaboration with OpenAI

When questioned about the relationship between the new data center and OpenAI’s models, a SoftBank representative referred to earlier announcements concerning their joint efforts to deploy an advanced enterprise AI solution named “Cristal Intelligence” in Japan. OpenAI has not provided any comments regarding this development.

Reports indicate that OpenAI aims to introduce its foundational AI models to the Japanese market, utilizing GPUs at the Sakai facility for model development. The SB OpenAI Japan joint venture will utilize client data to train models and subsequently offer customized AI agents to businesses, according to a report from Nikkei.

Expanding the Scope of Collaboration

This data center initiative highlights the expanding partnership between SoftBank and OpenAI. The two companies launched their joint venture following OpenAI’s collaborations with SoftBank, Oracle, and other firms to establish several AI data centers across the United States.

Additionally, there are reports suggesting that SoftBank is considering an investment of up to $25 billion in OpenAI, which is valued at nearly $300 billion. As of now, this funding round has not been officially confirmed.

Future Plans for the Sakai Facility

SoftBank’s acquisition of the Sakai Plant comes just ten months after signing a memorandum of understanding (MOU) to develop a large AI data center at the same facility. The company plans to commence operations by 2026, with the factory designed to support an initial power capacity of approximately 150 megawatts, increasing to over 240 megawatts in the future.

The Sakai facility will represent SoftBank’s third data center, complementing an existing data center in Tokyo and another currently under construction in Hokkaido.

For more information about AI developments in Japan, visit our AI news page.