Shares in Japanese conglomerate SoftBank (SFTBY) had a hard pre-market session today on reports that its OpenAI joint venture plan had fallen significantly behind schedule.
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Fall Update
The partnership bringing artificial intelligence services to corporate customers was supposed to have been set up this summer. But according to a report in Reuters quoting sources familiar with the matter, the preparations are taking longer than expected.
There is no indication what has caused the delay, but it is understood that an update on the process will be announced in November.
SoftBank told Reuters that preparations were proceeding, but declined to comment on details. OpenAI did not comment.
SoftBank CEO Masayoshi Son announced the venture, SB OpenAI Japan, with OpenAI CEO Sam Altman in February. SoftBank said the venture would be owned by OpenAI and a company established by SoftBank and its domestic telecoms unit.
AI Push
At a shareholder meeting in June, the CEO of the telecoms business, Junichi Miyakawa, said July-end was the target to set up the venture. The products the business will offer are in discussion, Miyakawa said.
SoftBank is making a big push on AI to help it keep outcompeting its peers – see below:
It is currently exploring a $1 trillion plan to build a massive AI and robotics manufacturing hub in Arizona. The project, known as “Project Crystal Land,” is still in its early planning stages but aims to produce semiconductors and industrial robots at scale. The goal is to expand U.S. manufacturing capacity in advanced technologies and reduce reliance on imports, particularly given President Trump’s tariffs strategy.
However, its $500 billion Stargate project to develop data centers in the U.S. has also been delayed by protracted negotiations with other parties and on decisions related to locations.
That project includes partners like Oracle (ORCL), OpenAI, and MGX.
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