SoftBank chases actual revenue with OpenAI in corporate Japan
The two companies are still fine-tuning the products they are co-developing for Japanese enterprises
[TOKYO] SoftBank Group Corp’s Japanese mobile unit and OpenAI will launch artificial intelligence (AI) services for local companies next year, seeking to realise real revenue in the face of growing concerns over sky-high valuations.
SoftBank Corp and Open AI are still fine-tuning the products the two companies are co-developing for Japanese enterprises, said Junichi Miyakawa, president of the country’s third-largest mobile carrier.
He said he has seen a test version of the services, which, once launched, would “completely change” the speed at which business is done.
One feature is voice recognition, which would allow users to rely less on manual typing, Miyakawa added.
“This will become a seed of growth to look forward to next year and beyond,” he said during an earnings call on Wednesday (Nov 5), which also marked the launch of SoftBank and OpenAI’s local joint venture, SB OAI Japan.
That is as shares of SoftBank Group plunged 10 per cent, the most since April, hit by fears about the Tokyo-based group’s exposure to sector leaders OpenAI and Nvidia.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
SoftBank Corp’s shares dropped 0.5 per cent, outperforming the broader market, after reporting a better-than-expected 26 per cent rise in net income to 203.4 billion yen (S$1.73 billion).
The Japanese mobile unit also reported an 8 per cent rise in revenue in the September quarter, helped by demand for its distribution and subscription services.
SoftBank Corp, which has operations spanning e-commerce and payment services, is a core source of revenue, and provides fuel for billionaire tech investor Masayoshi Son’s global ambitions.
In the past, the telecommunications arm has offered a path for overseas technologies to take root in Japan.
One result of those efforts, SoftBank-controlled payment business PayPay, now seeks to make a stock debut in the US, although the Securities and Exchange Commission’s review of the plans has slowed due to the US government shutdown.
Miyakawa said he anticipates that PayPay will turn out to be “an extremely valuable company” over the long term.
The firm, which plans to provide startups with free access to computing infrastructure, is seeking to secure Nvidia’s Rubin chips to help meet ballooning AI demand in Japan, he added. BLOOMBERG
Share with us your feedback on BT's products and services
