Osaka, Japan - OpenAI, the creator of the groundbreaking AI chatbot ChatGPT, is set to significantly expand its presence in Japan through a strategic partnership with SoftBank. The two tech giants have announced plans to construct a state-of-the-art AI data center in Osaka, converting Sharp's former LCD TV panel factory into a hub for cutting-edge artificial intelligence development.

The project, which involves SoftBank's acquisition of the Sharp facility for 100 billion yen (approximately $676 million), underscores the growing importance of Japan in the global AI landscape. The new data center is slated to begin operations in 2026, boasting an initial power capacity of 150 megawatts (MW), making it one of the largest of its kind in Japan. Future expansion plans include increasing the capacity to over 240MW to meet the anticipated surge in demand for AI services.

This ambitious undertaking is a direct result of the recently formed joint venture, SB OpenAI Japan, established just ten days prior to this announcement. The partnership aims to commercialize OpenAI's advanced AI agent models in Japan, offering tailored AI solutions to corporate clients by leveraging their proprietary data.

"This collaboration represents a significant step forward in our mission to bring the benefits of AI to businesses across Japan," said a spokesperson for SoftBank. "By combining OpenAI's innovative AI technology with SoftBank's extensive network and expertise in the Japanese market, we are confident that we can deliver unparalleled AI solutions that will drive growth and innovation."

The strategic location of the data center in Osaka is expected to provide a significant boost to the region's tech industry, creating new jobs and attracting further investment in AI-related sectors. The project also highlights Japan's commitment to becoming a global leader in AI development, with the government actively supporting initiatives that promote technological innovation and digital transformation.

This move by OpenAI and SoftBank is seen as a strategic effort to solidify their foothold in the rapidly expanding Japanese AI market, which is witnessing increasing competition from other major tech players. The partnership is expected to accelerate the adoption of AI across various industries in Japan, including finance, healthcare, and manufacturing, ultimately contributing to the country's economic growth and competitiveness.