OpenAI launches new AI tech partnership with SoftBank

OpenAI and SoftBank Group have announced a partnership to develop and market new AI technology called Cristal intelligence.

The advanced enterprise AI is designed to securely integrate the systems and data of individual enterprises in a way that is customised for each business.

SoftBank and OpenAI plan to set up a company called SB OpenAI Japan to market the technology exclusively to major companies in Japan.

Under the agreement, SoftBank will pay $3 billion per year to use OpenAI’s products across its companies, which will make it the first company in the world to integrate Cristal intelligence at scale as well as use existing tools like ChatGPT across the entire group.

SoftBank said that the roll out of Cristal Intelligence supports the partnership’s vision to further advance AI agent technology following the launch of OpenAI’s o1-series in 2024.

The AI models in the series are capable of reasoning, with the technology set to evolve into AI agents that can automate everyday tasks, including generating financial reports, managing customer inquiries and drafting documents, and freeing professionals to concentrate on strategic decision-making.

As part of its agreement with OpenAI, SoftBank Group companies will be granted priority access in Japan to the latest and most-advanced models developed by OpenAI.

The move comes after news emerged last week that SoftBank is reportedly in discussions to invest up to $25 billion in OpenAI as part of a deal that would make it the ChatGPT maker’s largest financial backer, surpassing current leading shareholder Microsoft.

The deal would see SoftBank invest between $15-25 billion directly into OpenAI, in addition to its existing $15 billion commitment to the Stargate project. The Japanese firm’s total investment could exceed $40 billion, marking one of its largest-ever investments and dwarfing its previous $16 billion investment in WeWork.

“This initiative will not only transform the way SoftBank Group operates but also revolutionise the way companies work in Japan and around the globe,” said Masayoshi Son, chairman and chief executive of SoftBank Group Corp. “SoftBank Group is fully committed to leveraging the new products across our entire organisation and utilise our great partnership with OpenAI to drive the AI revolution forward.”

The two companies are also currently working on a Stargate, an ambitious $100 billion data centre project that could expand to $500 billion over four years.