SoftBank’s Bold Move in AI: Transforming an Osaka Factory into a Data Powerhouse

SoftBank is forging ahead with its ambitious plans to establish a significant artificial intelligence (AI) operation right in its home country of Japan. This week, the tech giant made headlines by sealing a deal to purchase an old factory from Sharp for $676 million, aimed at converting it into a cutting-edge AI data center.

A Major Investment

The agreement with Sharp includes not just the factory but also the land where the Sharp Sakai Plant stands in Osaka, with the total transaction valued at 100 billion yen. This investment marks an essential step for SoftBank, underscoring the crucial role that data centers play in the rapidly evolving landscape of generative AI. As demand for AI applications surges, robust data center infrastructures are vital for training AI models and delivering associated services.

When asked whether this site will contribute to bringing OpenAI’s models to the Japanese market, a SoftBank representative highlighted the company’s previous announcement about an exciting collaboration with OpenAI to deploy an advanced enterprise AI known as “Cristal Intelligence” across Japan. Though OpenAI opted not to comment on the new developments, the partnership is shaping up to be a game-changer.

Collaborating with OpenAI

Reports suggest that OpenAI plans to leverage this facility to introduce its foundational AI models to Japan, harnessing powerful GPUs for model development. The joint venture, SB OpenAI Japan, formed between SoftBank and OpenAI, will utilize data from clients in marketing and other sectors to train personalized AI agents.

This initiative underscores the expanding scope of the collaboration between SoftBank and OpenAI. Their partnership echoes OpenAI’s earlier engagements with various companies, including Oracle, to lay the groundwork for several AI data centers in the U.S. Last summer, SoftBank made waves with rumors of investing up to $25 billion in OpenAI, which, if confirmed, would value the company at nearly $300 billion.

The Future of AI in Japan

SoftBank’s acquisition of the plant follows just about ten months after the signing of a Memorandum of Understanding (MOU) to develop this significant AI data center. The company is eyeing a 2026 launch for operations, with plans for the former LCD panel factory to serve as a powerhouse, providing an initial capacity of around 150 megawatts — eventually ramping up to over 240 megawatts.

This facility will soon complement SoftBank’s existing data infrastructure, as the company currently operates a data center in Tokyo and is constructing another in Hokkaido.

Looking Ahead

As SoftBank continues to build and expand its AI capabilities, the transformation of the Sakai Plant into a data center illustrates the company’s commitment to this technology sector. With these ambitious projects, SoftBank is not just catching up; it’s positioning itself as a leader in the burgeoning AI landscape.

The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.