On February 3, OpenAI CEO Sam Altman joined SoftBank CEO Masayoshi Son at a major AI briefing in Japan, attended by executives from 500 top companies. During the event, they announced the launch of their joint venture, "SB OpenAI Japan," and introduced "Cristal Intelligence," an AI tool tailored for enterprise use.
SoftBank's US$3 Billion Investment to support AI Integration
According to reports from Nikkei and ITmedia, Son revealed that SoftBank Group will invest US$3 billion annually into SB OpenAI Japan. This funding will help integrate Cristal Intelligence into SoftBank's various subsidiaries, including SoftBank Telecom, Arm, LY, ZOZO, and others, advancing AI tools across these businesses.
In January, Son and Altman unveiled the "Stargate" project in the presence of US President Donald Trump, with plans to invest US$50 billion in AI development in the US over the next four years. The US$3 billion annual investment in SB OpenAI Japan is seen as a key component of this broader initiative.
This collaboration offers crucial financial backing for OpenAI. Despite generating US$3.7 billion in revenue in 2024, OpenAI experienced a US$5 billion loss due to its early investments in AI chips. The US$3 billion from SB OpenAI Japan is expected to significantly improve OpenAI's financial outlook.
Cristal Intelligence, the AI tool introduced at the event, can autonomously analyze internal documents, codes, meeting notes, and more. It serves as an AI agent to drive business transformation and foster service innovation.
SB OpenAI Japan plans to promote Cristal Intelligence in Japan and establish data centers to ensure the safety of AI inference and training processes. As data sovereignty has become a priority in many countries, including Japan, there is a growing emphasis on reducing dependency on foreign technologies that could lead to a loss of control. If AI training and inference were to rely solely on US-based data centers, Japan's competitiveness in AI may fall behind.
Son acknowledged that while Cristal Intelligence's training and development would remain based in the US, the collaborative structure of SB OpenAI Japan would mitigate the risks of creating an over-reliant relationship between Japan and OpenAI.
Arm, SoftBank's UK-based subsidiary, also played a key role in the event, hinting at its involvement in providing hardware for Japan's upcoming data centers.
SoftBank Suspends use of DeepSeek amid security concerns
Throughout the event, Son expressed interest in the developments of DeepSeek, a Chinese AI startup. He inquired about its lower-cost AI models that are comparable to OpenAI's ChatGPT, as well as the company's breakthroughs in creating smaller, more efficient AI models. While Son showed interest in DeepSeek's innovations, he also reiterated OpenAI's focus on AI safety. OpenAI has committed to being transparent about the potential risks of misuse in its major AI models and ensuring that responses adhere to ethical guidelines to avoid harmful content.
Following the event, SoftBank's subsidiaries were instructed to temporarily suspend the use of DeepSeek's chatbot services until security concerns could be resolved.
Uncertainty in AI adoption for Japanese businesses
Despite the excitement surrounding the launch of SB OpenAI Japan's services, Japanese companies remain cautious about entrusting sensitive data to external service providers. The widespread adoption of AI services offered by SB OpenAI Japan is still uncertain, as businesses may be hesitant to rely on a single provider, especially if switching to another generative AI service becomes difficult in the future. This issue has already been seen in the cloud service sector, where clients have struggled to reject unilateral price hikes from service providers.
Furthermore, SB OpenAI Japan's services are still facing uncertainties, including potential costs and other challenges in the adoption process. This strategic partnership marks a significant step in the advancement of AI technology in Japan, yet the broader implications of data sovereignty, security concerns, and long-term business adoption remain to be fully seen.