Quick Summary
- SoftBank Group’s Japan division is partnering with OpenAI to introduce AI solutions for local businesses in 2026.
- The collaboration aims to offer localized AI services, including voice recognition, under the Crystal Intelligence package.
- Despite the partnership, SoftBank Group’s stock experienced a notable decline, partly due to investor concerns about its AI-related investments and ties.
- SoftBank has been significantly increasing its investments in key AI technology companies like Nvidia and TSMC.
- The company is also involved in large-scale AI infrastructure projects, reflecting a broad strategy to dominate the AI sector.
SoftBank and OpenAI Forge AI Alliance for Japanese Businesses
SoftBank Group’s Japanese mobile arm is set to collaborate with OpenAI, with plans to launch artificial intelligence offerings tailored for local companies starting in 2026. Junichi Miyakawa, President of SoftBank, indicated that the companies are finalizing the AI solutions intended for the Japanese market.
💡 Miyakawa expressed confidence in the transformative potential of these services after a trial, highlighting features like voice recognition designed to minimize manual data entry and streamline business operations.
The new venture, operating as SB OAI Japan GK, is a joint 50:50 partnership between SoftBank and OpenAI. This entity will market a comprehensive AI package named Crystal Intelligence, specifically customized for Japanese businesses, incorporating localized features, seamless workflow integration, and dedicated support.
SoftBank’s Strategic Investments and Market Position
SoftBank Group’s shares recently saw a 10% decrease, marking the most significant single-day drop since April. This decline was attributed to growing investor apprehension regarding the company’s associations with leading AI firms like OpenAI and Nvidia.
Concurrently, SoftBank Corp.’s stock experienced a slight dip of 0.5%. This movement followed the announcement of a strong 26% increase in net income, reaching ¥203.4 billion ($1.3 billion), surpassing previous forecasts.
In the third quarter, SoftBank’s mobile division reported an 8% rise in sales. This growth was primarily fueled by robust performance in its distribution and subscription services. SoftBank Corp., which also engages in online retail and payment services, continues to be a foundational element of Masayoshi Son’s extensive global technology empire.
SoftBank’s mobile unit has historically served as a critical conduit for introducing international technologies into the Japanese market. A notable outcome of this strategy is PayPay Corp., which is currently navigating the process of a U.S. initial public offering (IPO). However, these plans have encountered delays due to the U.S. Securities and Exchange Commission’s (SEC) review process being impacted by a government shutdown. Miyakawa expressed optimism, stating, I anticipate PayPay will turn out to be an extremely valuable company.
In August, the company began liquidating certain assets and Vision Fund holdings to finance CEO Masayoshi Son’s upcoming wave of AI investments. This included a significant sale of its shares in T-Mobile US Inc. valued at $3 billion.
Deepening AI Hardware Commitments
SoftBank has been consistently amplifying its investments in key players within the AI hardware ecosystem, specifically increasing its stakes in Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC).
Regulatory filings reveal that SoftBank’s investment in Nvidia had grown to approximately $3 billion by March, a substantial increase from $1 billion just three months prior. In addition to its expanded Nvidia holdings, SoftBank also acquired about $330 million worth of TSMC shares and $170 million in Oracle shares.
Ben Narasin, founder and general partner at Tenacity Venture Capital, drew a parallel between Nvidia and the essential picks and shovels of a gold rush, referencing the AI boom. He suggested that SoftBank’s investment in Nvidia could grant it enhanced influence and more accessible procurement of the chipmaker’s highly sought-after processors.
By early August, Nvidia’s market valuation had surged by approximately 90% from its lowest point in early April. Similarly, TSMC’s shares had appreciated by over 40% during the same period.
Further solidifying its commitment to the AI infrastructure, SoftBank is participating in the ambitious $500 billion Stargate data center project. This initiative includes collaborations with OpenAI, Oracle, and Abu Dhabi’s MGX fund. Masayoshi Son is also reportedly in discussions with TSMC and other entities to establish a monumental $1 trillion AI manufacturing hub in Arizona.
Richard Kaye, who co-manages Japan equity strategy at Comgest and has been a long-term investor in SoftBank, commented on Son’s expansive vision. Kaye stated, I think he sees himself as the natural provider of AI semiconductor technology. What Son really wants to do is capture the upstream and the downstream of everything.
Expert Summary
This article covers SoftBank Group’s strategic expansion into the AI sector, highlighted by its partnership with OpenAI to develop AI solutions for Japanese businesses. It details SoftBank’s significant investments in key AI hardware companies like Nvidia and TSMC, underscoring a broad strategy to establish a dominant presence in the growing AI landscape.
The piece also touches upon SoftBank’s increasing involvement in large-scale AI infrastructure projects and leadership’s vision for capturing value across the entire AI supply chain.