SoftBank makes a $1 billion bet on AI, teams up with Nvidia for chips

Japanese tech titan SoftBank is stepping up its game to fuel Japan’s AI race. According to a Nikkei report, the company is set to invest nearly $1 billion in the next two years to develop a “world-class” Japanese-specific generative AI model.

In addition to the investment, SoftBank is also teaming up with Nvidia to acquire specialized chips crucial for training hefty and intricate AI models. Training these large language models, such as the renowned OpenAI’s Chat GPT, demands cutting-edge graphics processing units. SoftBank eyes purchasing these from the U.S. chip behemoth Nvidia, as per Nikkei’s Monday scoop, citing undisclosed sources.

This hefty investment of 150 billion yen ($960 million) earmarked for 2024 and 2025 is an addition to the 20 billion yen SoftBank splurged on computing infrastructure just last year, Nikkei reported.

“When the investment is completed, SoftBank’s computing power is likely to be among the highest in Japan, as the company tries to develop a Japanese-language-specific generative AI with world-class performance. Graphics processing units (GPUs) will be purchased from U.S. chip designer Nvidia. The GPUs will not only be used for the company’s own development of generative AI but will also be loaned to other companies.”

Reportedly the largest of its kind by any Japanese company, this investment is poised to grant SoftBank the mightiest computing prowess in the land, per Nikkei. Japan finds itself trailing in private firms flaunting high-performance supercomputers, a necessity for building LLMs (large language models), despite a growing appetite for the tech.

SoftBank’s hefty bet could flip this narrative, cementing Japan’s standing in the generative AI arena, just as international contenders eye the market. Should this gamble pay off, SoftBank could well lead the pack in Japanese-language AI technology. This ambitious move unfolds amidst a backdrop where other major players like OpenAI and Microsoft cast their gaze upon the Japanese AI market.

By 2024, SoftBank anticipates unfurling its maiden AI model, promising complexity. But they’re not stopping there; a more potent iteration is slated for 2025. Meanwhile, fellow Japanese entities like NTT also roll up their sleeves in the AI domain.

Founded in 1981, SoftBank has emerged as a global powerhouse with significant stakes in companies such as Arm Holdings, Alibaba, Uber, and many others. Masayoshi Son’s latest venture, Project Izanagi, signifies the company’s relentless pursuit of innovation and its ambition to shape the future of technology.