Softbank and OpenAI deepen ties and launch new AI JV for JapanSoftbank and OpenAI deepen ties and launch new AI JV for Japan

Cristal intelligence is described as an advanced enterprise AI, and will “securely integrate the systems and data of individual enterprises in a way that is customized specifically for each company,” according to the SoftBank announcement. The deal will see SoftBank spend $3 billion a year to deploy OpenAI tech across its group companies, integrating Cristal intelligence and plugging in existing tools like ChatGPT Enterprise to employees.

The announcement states that this year OpenAI’s o1-series AI models will “evolve into agents, AIs capable of doing work for you independently – you give it a task and it will execute it.” These will automate everyday tasks, such as generating financial reports, drafting documents, and manage customer inquiries which will leave professionals free to focus on creativity and strategic decision-making, claims the release.

“We are thrilled to bring Cristal intelligence, Advanced Enterprise AI that is customized specifically for each company, to the market in a big way,” said Masayoshi Son, Chairman and CEO of SoftBank Group. “This initiative will not only transform the way SoftBank Group operates but also revolutionize the way companies work in Japan and around the globe. SoftBank Group is fully committed to leveraging the new products across our entire organization and utilize our great partnership with OpenAI to drive the AI Revolution forward."

The firms have also agreed to establish a joint venture company called SB OpenAI Japan, which will market Cristal intelligence exclusively to major companies in Japan.

SB OpenAI Japan will be 50:50 owned by OpenAI and a company established by SoftBank, which will be consolidated to SoftBank Corp. The JV will “serve as a springboard for introducing AI agents tailored to the unique needs of Japanese enterprises while setting a model for global adoption.”

SoftBank Group companies, including Arm, will be granted priority access in Japan to the latest and most-advanced models developed by OpenAI – which it says will transform their management and operational practices.

What it means by this is that Arm will utilize Cristal intelligence to “drive innovation and boost productivity across the company, strengthening its pivotal role in advancing AI globally.”

Rene Haas, CEO of Arm, said: "Arm is partnering with OpenAI and SoftBank to drive unprecedented productivity across the global technology ecosystem, setting new benchmarks and building a future in which AI agents span from edge to cloud on Arm. We are at the forefront of the AI revolution, and our high-performance, energy-efficient compute is going to be critical to advancing the Cristal intelligence.”

The deal will also see SoftBank automate over 100 million workflows via Cristal intelligence, and SoftBank and the JV will build “a secure environment for additional data training and fine-tuning of its data” to build AI agents.

By automating and autonomizing all of its tasks and workflows, SoftBank will “transform its business and services, and create new value,” it claims.

In terms of the division of labour, OpenAI will provide its AI research, technology, and engineering support to SB OpenAI Japan, while SoftBank will second its sales staff and engineers to work its Japanese network. Meanwhile Arm’s compute platform will “provide the performance, efficiency, and scalability required to support the increasing computational demands of AI agents, from the cloud to the edge.”

What they learn from this collaboration will create a “repeatable model for AI-driven transformation worldwide,” we’re told.

Sam Altman, CEO of OpenAI added: "This partnership with SoftBank will accelerate our vision for bringing transformative AI to some of the world’s most influential companies —starting with Japan."

The news comes hot on the heels of last week’s news that  SoftBank is mulling an investment in OpenAI between $15 billion and $25 billion, according to sources cited by the Financial Times.

Earlier in the month the two firms were announced the lead partners of The Stargate Project, which intends to invest $500 billion over the next four years which will be spent on building new AI infrastructure for OpenAI in the US. The buildout is currently underway in Texas, and the firms are evaluating potential sites across the US for more campuses, we were told at the time.

While the specific manifestations of OpenAI’s technology within businesses and what that will mean for the way things are done in the future remain somewhat nebulous, one thing is clear – it’s not going to be short of investment bucks along the way.