SoftBank has taken a significant step forward in its artificial intelligence (AI) ambitions in Japan, confirming the purchase of a former Sharp factory for $676 million to convert it into an AI data center. The acquisition, which includes the land and buildings of the Sharp Sakai Plant in Osaka, marks a crucial early step in SoftBank's plans to establish a major AI operation in its home market.

The data center, slated to commence operations in 2026, will have an initial power capacity of around 150 megawatts, eventually increasing to over 240 megawatts. This substantial capacity is necessary to train models and provision services, given the massive wave of generative AI sweeping the tech world. SoftBank's investment in the facility underscores the importance of data centers in supporting the growth of AI technology.

The acquisition is also seen as a key component of SoftBank's collaboration with OpenAI, a leading AI research organization. The two companies have formed a joint venture, SB OpenAI Japan, to deploy an advanced enterprise AI called "Cristal Intelligence" in Japan. OpenAI reportedly intends to bring its AI foundational models to the Japanese market, leveraging GPUs to develop models at the Sakai plant. The joint venture will train models using clients' data from marketing and other activities, and then sell customized AI agents to clients.

The data center plan highlights the broadening scope of SoftBank and OpenAI's collaboration. The two companies have been in talks for months, with SoftBank reportedly investing as much as $25 billion in OpenAI at a valuation of nearly $300 billion. Although the fundraise has yet to close or be officially announced, it underscores SoftBank's commitment to becoming a major player in the AI industry.

This development is significant not only for SoftBank and OpenAI but also for the broader AI ecosystem in Japan. The country has been actively promoting the development of AI technology, and SoftBank's investment in the data center is expected to contribute to the growth of the industry. With SoftBank already operating a data center in Tokyo and another one being built in Hokkaido, the Sakai facility will be its third AI data center in Japan.

The acquisition also marks a strategic move by SoftBank to strengthen its position in the Japanese market. By establishing a major AI operation in its home market, SoftBank is poised to capitalize on the growing demand for AI technology in Japan. As the country continues to invest in AI research and development, SoftBank's data center is expected to play a critical role in supporting the growth of the industry.

In conclusion, SoftBank's acquisition of the Sharp factory is a significant development in the company's AI ambitions in Japan. With its collaboration with OpenAI and investment in the data center, SoftBank is poised to become a major player in the Japanese AI industry. As the industry continues to evolve, it will be interesting to see how SoftBank's investment in AI technology shapes the future of the industry in Japan and beyond.