OpenAI Deepens Japan Focus as SoftBank Buys $676M Sharp Plant for AI Hub

• For its joint venture with OpenAI, SoftBank has announced plans to spend $676 million on a factory in Japan, which it plans to turn into an AI data center.
• OpenAI has increasingly set its sights on the Japanese AI market.
• In November 2024, the Japanese government launched a $65 billion plan to boost its AI and semiconductor industry.

SoftBank has announced plans to spend 100 billion yen ($676 million) on a factory formerly owned by Japanese electronics company Sharp, which will convert into an artificial intelligence data center.

The move is part of SoftBank’s continued collaboration with OpenAI as the U.S. ChatGPT maker pushes further into Japan’s market.

SoftBank Buys New Plant for OpenAI Venture

On Friday, March 14, SoftBank announced it was purchasing the land and buildings of the Sharp Sakai Plant in Osaka for $676 million.

The Japanese tech giant confirmed to TechCrunch that the site was part of its joint venture with OpenAI to launch an enterprise AI in Japan.

The facility, expected to commence operations in 2026, will be one of Japan’s largest, boasting a power capacity of 150 megawatts.

AI innovation and development relies on data centers, which serve as the backbone of its computational power.

The rapid advancements in AI, from large language models to sophisticated machine learning applications, require immense processing capacity and energy.

OpenAI’s Move Into Japan

OpenAI opened its first Japanese office in Tokyo last year, announcing OpenAI Japan.

The AI firm said it was committed to collaborating “with the Japanese government, local businesses, and research institutions to develop safe AI tools that serve Japan’s unique needs and to unlock new opportunities.”

To lead the Japanese branch, OpenAI appointed Tadao Nagasaki, a former executive at AWS, as President.

As part of a further commitment to the region, OpenAI introduced a custom GPT-4 model optimized for the Japanese language.

In January, it was reported SoftBank was in talks to invest up to $25 billion in OpenAI, which is valued at almost $300 billion.

In 2023, CEO Sam Altman said he hoped his company could build “something great for Japanese people [and] make the models better for Japanese language and Japanese culture.”

Japan’s AI Push

The Japanese government is also proactively supporting the domestic semiconductor and AI industries, launching a $65 billion plan in subsidies and financial incentives.

The plan will extend until 2030, aimed at boosting the country’s leadership in emerging technologies, as export tensions continue to grow between the U.S. and China.

In 2023, Japan joined the U.S. in restricting exports of 23 types of semiconductor manufacturing equipment to China.

Japan has also been proactive about using AI in its defense. In July, the country introduced a policy to promote the use of AI in its military.

“We will deepen cooperation with the private sector and relevant foreign agencies by proactively conveying the Defense Ministry’s view,” said defense chief Minoru Kihara.