SoftBank Teams With Nvidia To Bring Japan’s Largest AI Supercomputer With Blackwell Chip Power

SoftBank Group Corp., in collaboration with Nvidia Corp., is set to unveil Japan’s largest AI supercomputer powered by advanced Blackwell chips. This landmark project is a bold stride toward positioning Japan as a leader in artificial intelligence and digital transformation.

SoftBank’s AI Ambitions Take Shape

As an indication of the Japanese company's aspirations to catch up on artificial intelligence, SoftBank Group Corp. will construct the first supercomputer using chips utilizing Nvidia Corp.'s new Blackwell design, Reuters reports.

According to the two businesses, SoftBank's telecom unit is planning to construct the most powerful artificial intelligence supercomputer in Japan in order to back several local services. The DGX B200 from Nvidia, which integrates CPUs with so-called AI accelerator chips, will serve as the foundation for that machine. Grace Blackwell, an upgraded version, will be included in a subsequent endeavor.

Market Response and Strategic Gains

The third-largest wireless carrier in Japan, SoftBank Corp., saw its share price recover and rise 1% on Wednesday. A 1.7% decline was recorded by SoftBank Group, which includes the investment teams of the corporation.

The world's leading tech businesses utilize Nvidia's chips to build and run AI models, making them a highly sought-after commodity. In order to complete the process, software must be inundated with data, a task that accelerator chips excel at.

Securing Early Access to Nvidia’s Blackwell Chips

According to the release, SoftBank has managed to get a prime position in line for the chips. This is significant because SoftBank had 4.9% of Nvidia until early 2019. Masayoshi Son, founder of SoftBank, has proclaimed his intention to "swing for the fences" in artificial intelligence projects. The firm announced a return to profitability on Tuesday, riding the wave of soaring tech valuations.

Production delays delayed the introduction of the new Blackwell portfolio, which Nvidia CEO Jensen Huang had promised earlier this year. Customers are eager to get their hands on the first new chips, even though Huang has promised that supply will be plenty as manufacturing ramps up.

Celebrating a Longstanding AI Partnership

On Wednesday, at Nvidia's AI Summit in Tokyo, Son joined Huang on stage. Son scowled and giggled as he embraced Huang in a bear hug, alluding to SoftBank's former investment in Nvidia, which is now valued at about $178 billion.

Per Yahoo Finance, in its promotion of the "new industrial revolution," Nvidia has been making the rounds of the world to hold these kinds of events. The goal of recent events in Japan and India is to diversify Nvidia's customer base away from a small number of very large US companies and increase the use of AI systems in national-level initiatives.

Transforming Japan’s Networks With AI Capabilities

Along with the new computer and the intention to build a second, Nvidia gear will be utilized by SoftBank's telecom unit to offer artificial intelligence capabilities through cellular networks. Hardware built on specialized processors for mobile data traffic optimization isn't the best fit for emerging AI services.

By transforming the communications network into an AI network, "what will result is an AI grid that runs across Japan," as Huang put it.

AI-RANs to Support Robotics and Autonomous Services

Remote robotics, autonomous vehicle support, and other service powering will be better handled by new AI-RANs, according to Huang. They'll use less power overall.

Fujitsu Ltd. and Red Hat, a subsidiary of International Business Machines Corp., will start testing the network with the telecom unit's partners.

SoftBank Pushes for Government Support in AI Expansion

“We are going to buy a lot of your chip,” Son informed Huang.

The Japanese tycoon, who has frequently blasted the government and businesses for being too sluggish to embrace new technology, recently claimed that Japan is about to undergo a transformation.

According to him, the Japanese government is currently not obstructing the expansion of artificial intelligence and robotics.

Japan’s Domestic Chip Production Gains Momentum

The capability of Japan's domestic chip manufacture has been strengthened with the allocation of ¥4 trillion ($26 billion) by the Japanese government.

One such endeavor is the moonshot behind Rapidus Corp., which aims to construct a cutting-edge foundry from the ground up in order to compete with Nvidia chipmaker Taiwan Semiconductor Manufacturing Co. Additionally, the nation's semiconductor and artificial intelligence sectors have received about $65 billion in new funding from Prime Minister Shigeru Ishiba.

"But they should push more," Son told Huang. “As you say, this is the reset, this is the catch up moment for this revolution. We can’t miss this time.”