SoftBank and OpenAI's Japanese Joint Venture Faces Significant Delays

SoftBank and OpenAI's Joint Venture Faces Setbacks

SoftBank Group Corp's ambitious plan to establish a joint venture with OpenAI in Japan has hit a significant snag. The venture, aimed at bringing artificial intelligence services to corporate customers in Japan, is now considerably behind schedule, according to sources familiar with the matter 1

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Source: Benzinga

Initial Plans and Delays

The joint venture, named SB OpenAI Japan, was initially announced in February 2025 by SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman. The venture was slated to be set up during the summer of 2025, with a specific target of late July mentioned by Junichi Miyakawa, CEO of SoftBank's domestic telecoms unit, at a June shareholder meeting 1

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However, preparations have taken longer than anticipated, pushing the timeline back significantly. An update on the venture's progress is now expected in November, highlighting the complexity of the undertaking 2

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Ownership Structure and Objectives

The joint venture is set to be owned by OpenAI and a company jointly established by SoftBank and its domestic telecoms unit. While the specific products and services to be offered are still under discussion, the primary goal is to leverage OpenAI's artificial intelligence capabilities and distribute them to Japanese corporate clients through SoftBank's extensive network 3

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Broader Context of SoftBank's AI Investments

This delay comes at a time when SoftBank is aggressively pursuing AI-related investments after a period of retrenchment due to previous tech investment setbacks. The company has been making splashy moves in the AI sector, including:

1. Leading a $40 billion investment round into OpenAI
2. Pursuing a $6.5 billion acquisition of Ampere Computing
3. Backing the $500 billion Stargate data center project in the U.S. 2

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Source: Reuters

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Other SoftBank Projects Facing Delays

Interestingly, the OpenAI joint venture is not the only SoftBank project facing delays. The $500 billion Stargate project to develop data centers in the U.S. has also been postponed due to protracted negotiations with other parties and decisions related to locations, as reported by SoftBank's chief financial officer Yoshimitsu Goto 4

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Financial Performance and AI Focus

Despite these delays, SoftBank has reported strong financial performance, with net sales reaching 1.82 trillion yen ($12.54 billion) in the first quarter, up from 1.70 trillion yen the previous year. The company's Vision Fund also posted a significant profit of 660.2 billion yen ($4.55 billion), driven by rising share prices in holdings such as Coupang, Symbotic, and Auto1 2

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As SoftBank continues to navigate the complex landscape of AI investments and partnerships, the tech industry watches closely to see how these ambitious projects will unfold and potentially reshape the AI services market in Japan and beyond.