- SoftBank will invest 150 billion yen ($960 million) to bolster its computing facilities by 2025 in preparation for development of its own generative AI.
- In addition to working on a less advanced model, the company will startĀ developingĀ a world-class generative intelligence model as early as next year.
Japanese tech conglomerateĀ SoftBankĀ is looking to developĀ aĀ "world-class" Japanese-language-specific generative artificial intelligence model,Ā and plans to invest $960 million in the next two years to bolster its computing facilities, according to aĀ Nikkei report.Ā
TrainingĀ ofĀ large language models (LLM), such as OpenAI's Chat GPT, requires advanced graphics processing units, which SoftBank plans to purchase from U.S. chip giantĀ Nvidia, the Nikkei reported Monday, citing anonymous sources.Ā
TheĀ investment ofĀ 150 billion yen ($960 million) will be spent in 2024 and 2025Ā and adds toĀ 20 billion yen that SoftBank spent on computing infrastructure last year, the report said.
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The latest investment is believed to be the largest of its kind by any Japanese company, and when completed, will likely give SoftBank the most powerful computing capabilities in the country, Nikkei added.
According to another report fromĀ Nikkei Asia, Japan lacks privateĀ companiesĀ with the high-performance supercomputers that are needed to build LLM,Ā despite increased interest in the tech.
SoftBank's reported investments could change this and give Japan a strong domestic player in its generative AI space at a time when international players are trying to enter the market.
Money Report
Just last week, OpenAIĀ opened its first office in Tokyo as part of its global expansion plans. Meanwhile, Microsoft said itĀ would invest $2.9 billionĀ over two years to increase its cloud computing and AI infrastructure in the country.
In fiscal year 2024, SoftBank expects to complete its first model, which will have 390 billion parameters, an indication of LLM complexity. It will also startĀ developing a higher-performance model with 1 trillion parameters as soon as 2025, according to Nikkei.
Other local players like Japanese telecommunications companyĀ NTT have announcedĀ plans to develop an LLM this fiscal year. NTT says it will also invest 8 trillion yen ($51.7 billion)Ā intoĀ growth areas like data centers and AIĀ over the next five years.
According to data fromĀ Statista Market Insights, Japan's AI marketĀ is expectedĀ to grow to around $13 billion by 2030, about 17 times larger than in 2023.
SoftBank's stock price has trended positively as the companyĀ shifts its focus to AI, and is up by about 20% year-to-date. It is also the majority owner of the chip company Arm, which has experienced aĀ boost in sales expectationsĀ amid the AI boom.
SoftBank isĀ reportedlyĀ working on building AI data centers across Japan and recently joined a project toĀ buildĀ a 65 billion yen center in Hokkaido.
