SoftBank is set to buy Sharp’s old LCD factory in Sakai, Japan for approximately $676 million. The tech giant will convert this site into a major AI data center, expected to operate by 2026 and initially running at 150 megawatts, later scaling to over 250 megawatts. This facility will support AI model development in partnership with OpenAI, showcasing SoftBank’s ambition to lead in AI infrastructure in Japan. The acquisition comes amid financial struggles for Sharp, which has seen significant losses recently. SoftBank’s investment aims for sustainability and may reach about $6.7 billion, highlighting the importance of local data processing as Japan focuses on data sovereignty.
SoftBank Unveils Major Investment in AI with Sharp Factory Purchase
SoftBank has made headlines recently by deciding to buy Sharp’s old LCD manufacturing plant located in Sakai, Osaka for 100 billion yen, which is around $676 million. This deal, announced on Friday, marks a big move for the Japanese tech giant as it plans to turn the unused factory into a large-scale AI data center. Operations at this new facility are set to launch in 2026.
Key Points to Note:
The Sakai site spans 45 acres and will initially operate at a power capacity of 150 megawatts. Over time, it aims to scale up to more than 250 megawatts.
SoftBank intends to utilize the center to develop AI models in collaboration with OpenAI, potentially spearheading the first commercialization of OpenAI’s agent models in Japan.
This purchase is part of SoftBank’s strategy to position itself as a key player in Japan’s AI infrastructure Market.
This acquisition reinforces SoftBank’s commitment to AI development, as it marks its third data center in Japan. The other two are in Tokyo and Hokkaido, with additional plans for a facility in Kyushu. The Sakai data center will cater to the heavy computing requirements associated with advanced AI models as it is designed to handle massive data processing needs.
Moreover, this purchase signals a deepening relationship between SoftBank and OpenAI. Although OpenAI has not commented specifically on the deal, a SoftBank spokesperson cited their previous announcement about introducing an advanced enterprise AI system, known as “Cristal Intelligence,” in Japan. Reports suggest that the collaboration intends to train AI models using client data and provide tailored AI agents to businesses.
“This AI data center will focus on generative AI development and related ventures,” SoftBank stated in its press release. The facility will also be accessible to universities, research institutions, and businesses.
Industry experts believe this investment aligns with Japan’s increasing focus on data sovereignty, which emphasizes keeping crucial AI infrastructure and data processing within the nation.
For Sharp, selling the factory could be a financial boost. The company has faced challenges in the LCD Market, reporting losses amounting to 410 billion yen over the last two years. Profits from this sale may help Sharp move towards profitability in the current fiscal year.
According to estimates, SoftBank’s total investment in the Sakai facility could reach up to 1 trillion yen ($6.7 billion), largely due to the anticipated requirement of around 100,000 GPUs for full operation. Nvidia is likely to supply these GPUs, working in conjunction with Stargate Project, a company launched recently by SoftBank Group to focus on AI infrastructure in the U.S.
This acquisition is the result of discussions that started about ten months ago when SoftBank first established a memorandum of understanding with Sharp to repurpose the LCD plant. Besides its core AI objectives, SoftBank is also committed to ensuring that the facility is environmentally friendly, aiming for carbon neutrality as part of its vision.
In summary, SoftBank’s significant investment into this AI data center not only highlights its ambitions to be a leader in AI technology but also showcases a strategic partnership with OpenAI that could reshape the AI landscape in Japan.
Author Bio:
Chris McKay is the founder and chief editor of Maginative. His insights on AI literacy and strategic adoption have been recognized by leading academic institutions, media, and global brands.
Tags: SoftBank, Sharp, AI Data Center, OpenAI, Japan Technology News
What is the new AI hub being created by SoftBank?
SoftBank is turning an old factory from Sharp into a new hub for AI technology. They are investing $676 million to do this, making it a center for developing and advancing AI solutions.
Why did SoftBank choose the Sharp factory for this project?
The Sharp factory was selected because of its existing infrastructure and its location. This makes it a good spot for SoftBank to focus on AI research and development.
What kind of work will be done at the AI hub?
The AI hub will focus on various projects related to artificial intelligence. This includes research, innovation, and creating new AI technologies to improve different industries.
How does SoftBank’s investment impact the local economy?
SoftBank’s investment can create new jobs and stimulate the local economy. This will provide opportunities for skilled workers and encourage more technology-related businesses in the area.
What does this mean for the future of AI in Japan?
This project signals a strong commitment from SoftBank to lead in AI development in Japan. It shows that there is a focus on innovation and growth in the technology sector, which can help Japan stay competitive globally.