SoftBank and OpenAI form joint venture
SoftBank and OpenAI form joint venture to sell AI services in Japan
SoftBank and OpenAI have announced a 50-50 joint venture to deliver AI tools to businesses across Japan. The new venture aims to tap into the rapidly growing AI market, with SoftBank leveraging its vast corporate ecosystem to market OpenAI’s products.
Key Takeaways
- The collaboration will focus on bringing OpenAI's services to Japan's diverse industries, including automotive and retail.
- SoftBank’s group companies will invest about $3 billion annually in OpenAI's tools.
- The venture aims to drive AI advancements in Japan, with SoftBank also playing a major role in AI infrastructure development.
SoftBank and OpenAI Form a 50-50 Partnership
SoftBank Group Corp. and OpenAI have joined forces to create a joint venture that will introduce OpenAI’s AI tools to businesses throughout Japan. The collaboration, unveiled by SoftBank founder Masayoshi Son and OpenAI CEO Sam Altman, will operate under SoftBank’s telecom arm, SoftBank Corp., reports Bloomberg.
SoftBank Group Corp (SFTBY) share price dynamics (Jul 2023 - Feb 2025) Source: Investing.com
The venture plans to hire 1,000 people from SoftBank to market OpenAI’s AI products, targeting industries ranging from automotive manufacturers to retailers. With SoftBank's vast network and reach in Japan, the collaboration aims to make OpenAI’s cutting-edge AI tools accessible to a broad range of enterprise clients.
SoftBank’s Investment in AI Grows
As part of the partnership, SoftBank's group companies, including LY Corp. and PayPay Corp., will collectively invest about $3 billion annually in OpenAI’s tools. This marks a significant commitment to AI from SoftBank, further solidifying its position as a major player in the AI development space.
This investment also reflects SoftBank's ongoing efforts to lead AI innovation worldwide. From spearheading the $100 billion Stargate initiative in the US to working on datacenter infrastructure in Japan, SoftBank is positioning itself at the forefront of the AI revolution.
Ambitious Plans for the Future
The joint venture underscores both SoftBank and OpenAI’s belief in AI’s transformative potential. Son emphasized the importance of “more brain” in AI development, countering arguments that smaller, cheaper AI models could suffice. Altman, sharing a vision of AI breakthroughs in healthcare and robotics, stated that the most value would be created at the frontier of AI development.
SoftBank’s investment in the AI space is a testament to its long-term vision of integrating AI across industries, and with this new venture, it is laying the groundwork for future innovations. The partnership between SoftBank and OpenAI is a significant step forward in AI’s global expansion. By leveraging SoftBank's extensive corporate ecosystem and infrastructure, the venture aims to revolutionize industries in Japan and drive advancements in AI technology.
Reminder, OpenAI CEO Sam Altman acknowledged the "impressive" capabilities of DeepSeek's R1 AI model, a low-cost alternative to more resource-intensive systems like those developed by OpenAI.
