SoftBank Acquires $676M Sharp Plant to Power OpenAI Collaboration in Japan

SoftBank has announced the acquisition of a former Sharp LCD panel factory in Sakai City, Osaka Prefecture, for $676 million (100 billion yen). The Japanese tech giant plans to transform the facility into one of the country’s largest artificial intelligence (AI) data centers as part of its growing partnership with OpenAI. Operations at the site are expected to begin in 2026.

The facility will play a pivotal role in advancing generative AI technologies and enterprise solutions in Japan. With an initial power capacity of 150 megawatts—expandable to over 250 megawatts—the data center will serve as the backbone for training and deploying large-scale AI models. This includes OpenAI’s foundational models, which will be adapted for Japanese enterprises through SB OpenAI Japan, a joint venture between SoftBank and OpenAI.

SoftBank’s spokesperson confirmed that the site aligns with their strategic collaboration with OpenAI to commercialize advanced enterprise AI solutions under the brand "Cristal Intelligence." The joint venture aims to train models on client data from sectors like marketing and operations, offering customized AI agents tailored to business needs.

This acquisition marks a significant milestone in SoftBank’s broader ambition to establish itself as a global leader in AI infrastructure. It also reflects OpenAI’s deepening focus on Japan, following the launch of its Tokyo office and the introduction of a custom GPT-4 model optimized for the Japanese language.

The Japanese government has been actively supporting such initiatives, aiming to boost its semiconductor and AI industries amid growing export tensions between the U.S. and China. With SoftBank’s investment, Japan is poised to strengthen its position as a hub for AI innovation in Asia.

In addition to this project, SoftBank is reportedly negotiating an investment of up to $25 billion in OpenAI, potentially making it the largest investor in the ChatGPT creator. While this funding round has yet to be finalized, it underscores the strategic importance of their partnership.

As generative AI continues to reshape industries globally, SoftBank’s latest move highlights the critical role of robust data center infrastructure in driving innovation and meeting growing computational demands. This facility will not only serve SoftBank and OpenAI’s ambitions but also provide resources for universities and research institutes across Japan.