SoftBank Acquires Sharp Plant for $676M to Support OpenAI Collaboration

SoftBank Expands AI Infrastructure in Japan

SoftBank is actively pursuing its goal of establishing a significant AI operation within Japan. This expansion is being achieved through independent efforts and strategic alliances, notably with OpenAI.

The technology company recently confirmed a $676 million investment to acquire a former Sharp LCD panel manufacturing facility. This facility will be repurposed into a cutting-edge artificial intelligence data center.

Acquisition Details

The agreement between SoftBank and Sharp encompasses both the land and buildings of the Sharp Sakai Plant, located in Osaka. The total transaction value is 100 billion yen, equivalent to $676 million.

This acquisition represents a crucial initial phase for SoftBank. Modern data centers are fundamental to the current surge in generative AI, requiring substantial capacity for both model training and subsequent service deployment.

Connection to OpenAI

When questioned about the site’s role in commercializing OpenAI’s models in Japan, a SoftBank representative directed inquiries to a prior announcement. This announcement detailed a collaboration to introduce “Cristal Intelligence,” an advanced enterprise AI solution, to the Japanese market.

OpenAI declined to provide a statement regarding the news.

Joint Venture and Model Development

Reports indicate that OpenAI plans to introduce its core AI models to Japan. This will involve utilizing GPUs for model development at the Sakai plant.

SB OpenAI Japan, a joint venture established by SoftBank and OpenAI, will focus on training models using client data gathered from marketing and other business functions.

According to a report by Nikkei, the joint venture will then offer customized AI agents to its clientele.

Broadening Collaboration

This data center initiative highlights the expanding scope of the partnership between SoftBank and OpenAI.

The joint venture in Japan was unveiled following OpenAI’s collaborations with SoftBank, Oracle, and other companies to construct multiple AI data centers within the United States.

Furthermore, the Japanese telecommunications giant is making significant investments in OpenAI. Discussions have been ongoing for several months, with reports suggesting a potential investment of up to $25 billion, valuing OpenAI at approximately $300 billion.

However, this funding round has not yet been finalized or officially announced.

Timeline and Capacity

SoftBank’s acquisition of the plant occurred approximately ten months after signing a Memorandum of Understanding (MOU) to build a large-scale AI data center at the former Sharp LCD panel production facility.

Operations are projected to begin in 2026. The facility is expected to have sufficient power capacity to support the AI data center, initially operating at around 150 megawatts, with plans to scale up to over 240 megawatts.

Expanding Data Center Footprint

The Sakai facility will become SoftBank’s third data center. The company currently operates a data center in Tokyo, and another is under construction in Hokkaido.

This expansion demonstrates SoftBank’s commitment to becoming a leader in the rapidly evolving AI landscape.