Softbank Acquires $676M Sharp Plant for OpenAI Partnership in Japan

Priyadharshini S March 15, 2025 | 02:00 PM Technology

SoftBank is advancing its AI ambitions in Japan, independently and through strategic partnerships like OpenAI. On Friday, the tech giant confirmed a $676 million purchase of a former Sharp LCD factory, set to be transformed into an AI data center.

Figure 1. SoftBank Acquires Sharp Plant for $676M to Strengthen OpenAI Partnership in Japan.

SoftBank has signed a $676 million deal with Sharp to acquire the Sakai Plant in Osaka, including its land and buildings. This move is crucial for SoftBank's AI ambitions, as data centers play a key role in powering generative AI by training models and running services. Figure 1 shows SoftBank Acquires Sharp Plant for $676M to Strengthen OpenAI Partnership in Japan.

When asked about the site’s role in OpenAI’s commercialization plans in Japan, a SoftBank spokesperson pointed to its previous announcement about deploying “Cristal Intelligence,” an enterprise AI. OpenAI declined to comment.

According to Nikkei, SB OpenAI Japan—a joint venture between SoftBank and OpenAI—plans to use the Sakai plant’s GPUs to develop foundational AI models. The JV will train models on client data and offer customized AI agents to businesses.

The plan for the new data center highlights the expanding collaboration between SoftBank and OpenAI.

Following OpenAI’s partnerships with SoftBank, Oracle, and others to build AI data centers in the U.S., the joint venture in Japan marks a significant step forward. SoftBank is also reportedly investing up to $25 billion in OpenAI, with the latest valuation approaching $300 billion. However, this funding round has not yet been finalized or officially announced.

SoftBank’s acquisition of the former Sharp plant comes about 10 months after they signed a memorandum of understanding to convert the site into a large AI data center. The company plans to begin operations in 2026, with the facility expected to initially operate at 150 megawatts, growing to over 240 megawatts.

This new Sakai facility will be SoftBank’s third data center, joining its existing Tokyo center and a new one under construction in Hokkaido.

SoftBank’s Growing AI Ambitions

SoftBank is accelerating its efforts to establish a major AI presence in Japan, both independently and through partnerships with key players like OpenAI. The acquisition of a $676 million Sharp plant in Osaka marks a crucial step in this strategy, as the facility will be repurposed into a cutting-edge AI data center. This move comes as SoftBank looks to expand its footprint in the rapidly evolving field of generative AI.

The Importance of AI Data Centers

Data centers are critical infrastructure for the development and deployment of AI models. SoftBank's new AI data center will house the necessary capacity to train complex models and provide services. These data centers are essential for the wave of generative AI that is sweeping the tech world, as they enable high-performance computing capabilities needed for AI model training and execution.

Collaboration with OpenAI

This acquisition is part of SoftBank’s broader collaboration with OpenAI, with the two companies working together to bring advanced AI technologies to Japan. SoftBank is leveraging its data centers to support the commercialization of OpenAI’s foundational models. They have also partnered to launch a joint venture called SB OpenAI Japan, which will focus on training models using data from clients and offering tailored AI solutions.

A $25 Billion Investment

In addition to the plant acquisition, SoftBank is reportedly investing as much as $25 billion in OpenAI, a deal that could help bring OpenAI’s models to the Japanese market. Though the investment has not been finalized or publicly announced, it underscores the depth of the partnership between SoftBank and OpenAI, as both companies look to scale AI development and commercialize solutions in Japan.

SoftBank’s Expanding Data Center Network

The Sakai facility will be SoftBank’s third AI data center. With an existing center in Tokyo and another under construction in Hokkaido, SoftBank is positioning itself as a key player in Japan’s AI infrastructure. The Sakai plant, with its potential for significant power capacity, will be central to SoftBank’s operations, supporting AI services initially at 150 megawatts, with plans to increase that to over 240 megawatts in the future.

Source: TC

Cite this article:

Priyadharshini S (2025),"Softbank Acquires $676M Sharp Plant for OpenAI Partnership in Japan",AnaTechMaz, pp. 75

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