SoftBank pours $670M to convert factory into AI data center
What's the story
Japanese multinational investment firm, SoftBank, has confirmed its plans to invest $672 million in a former Sharp factory.
The facility, which was previously used for LCD panel production, will be transformed into an artificial intelligence (AI) data center.
The acquisition comes as part of SoftBank's larger strategy to establish a significant AI operation in Japan, something it plans to do through independent efforts and strategic partnerships with firms like OpenAI.
Acquisition details
Sharp Sakai Plant in Osaka acquired
SoftBank's acquisition involves both land and buildings of the Sharp Sakai Plant in Osaka. The deal was finalized at a price of 100 billion yen (around $672 million).
This move comes as a crucial step for SoftBank, considering that data centers are the backbone for training models and running subsequent services in the rapidly growing field of generative AI.
Strategic partnership
Collaboration with OpenAI for enterprise AI deployment
A SoftBank spokesperson hinted at the possibility of using the site for commercializing OpenAI's models in Japan, according to TechCrunch.
The spokesperson cited a previous announcement of a collaboration with OpenAI.
The idea is to deploy an advanced enterprise AI called "Cristal Intelligence" in Japan. OpenAI has yet to comment on this development.
Joint venture
SB OpenAI Japan to train models using client data
OpenAI plans to bring its foundational AI models into the Japanese market. The company plans to use GPUs at the Sakai plant for model development.
SB OpenAI Japan, a joint venture between SoftBank and OpenAI, will train models using data from clients' marketing and other activities.
This joint venture will then provide customized AI agents to clients, Nikkei reports.
The Sakai facility will be SoftBank's third data center. It already operates one in Tokyo, with another under construction in Hokkaido.
Future prospects
SoftBank's investment in OpenAI and future plans
Reportedly, SoftBank is investing up to $25 billion in OpenAI, which is valued at nearly $300 billion. However, this fundraising has neither been officially announced nor completed.
The purchase of the Sharp plant for an AI data center comes about 10 months after SoftBank signed an MoU to build a large AI data center at a former Sharp LCD panel production facility.
Operations are expected to begin in 2026.