SoftBank Corp. is set to transform Sharp's former LCD panel plant in Sakai, Osaka, into a cutting-edge AI data center, partnering with U.S.-based OpenAI, the creator of ChatGPT. The move marks a significant step in Japan's AI infrastructure, with investments potentially reaching $7 billion.

The acquisition deal, expected to be signed on Friday, involves SoftBank purchasing the facilities and part of the land for around 100 billion yen ($676 million). The site was chosen due to its capacity to secure long-term electricity supply, critical for AI data processing.

Construction is slated to begin in fiscal 2025, with operations launching in 2026. The center will start with a power capacity of 150 megawatts, expanding to 250 MW by 2028, making it one of Japan’s largest AI data centers.

The facility will host AI agents, autonomous programs that make decisions and perform tasks based on user-set parameters. SoftBank and OpenAI plan to commercialize AI agent base models in Japan, the first such effort globally. OpenAI will supply the necessary GPUs, likely sourced from Nvidia and the Stargate Project, a venture backed by SoftBank Group to develop AI infrastructure in the U.S.

A joint venture between SoftBank Corp., SoftBank Group, and OpenAI will focus on training these AI models using client company data from human resources to marketing, allowing businesses to deploy customized AI agents tailored to their needs.

The Sakai data center will require about 100,000 GPUs to reach full capacity, pushing investments close to 1 trillion yen ($6.7 billion). The funds will be deployed in phases, keeping pace with market demand.

Japan’s rising focus on data sovereignty, ensuring sensitive data remains within national borders, adds strategic value to the Sakai AI facility. Alongside training OpenAI models, SoftBank Corp. will also develop its own generative AI base model and offer the center’s resources to domestic companies and research institutions.

This project is part of SoftBank's broader plan to establish AI data centers in major Japanese cities. Sakai will be the third, following one operational center in Tokyo and another under construction in Hokkaido, with a fourth site planned in Kyushu.

The sale also offers a financial lifeline to Sharp, which reported combined net losses of 410 billion yen over the past two fiscal years due to poor LCD panel performance. The sale's profits are expected to help Sharp return to profitability by March 2025.

PHOTO: AFP/YUICHI YAMAZAKI

This article was created with AI assistance.