SoftBank's Japanese telecom subsidiary is set to be the first recipient of Nvidia's newest Blackwell architecture chips designed for supercomputers, marking a significant step as Masayoshi Son aims to capitalize on the artificial intelligence surge. Nvidia, the California-based chip manufacturer, announced that SoftBank plans to utilize the Grace Blackwell chips for an additional supercomputer project. This announcement came during an AI event held in Tokyo, featuring prominent figures such as SoftBank Group CEO Masayoshi Son and Nvidia CEO Jensen Huang.
The telecom unit of SoftBank aims to construct Japan's most powerful AI supercomputer to enhance a variety of local services. This supercomputer will utilize Nvidia's DGX B200 product, which integrates traditional processors with AI accelerator chips. A subsequent initiative will involve the more advanced Grace Blackwell technology.
Following this news, shares of SoftBank Corp., Japan's third-largest wireless provider, rebounded to a 1% increase on Wednesday, while SoftBank Group's stock saw a decline of 1.7%.
Nvidia's chips have become highly sought-after components for major technology firms, essential for developing and executing AI models. These models require extensive data processing, a task that accelerator chips excel at handling.
The announcement signals that SoftBank, which held a 4.9% stake in Nvidia until early 2019, has secured a prime position for acquiring these chips. Masayoshi Son has expressed his ambition to make bold investments in AI. On Tuesday, SoftBank reported a return to profitability driven by increasing technology valuations.
Additionally, the two companies confirmed collaborations to deliver AI services over 5G networks and to establish a marketplace for local computing resources.
This partnership underscores Japan's commitment to re-establishing itself as a leader in technology and innovation, particularly as it faces challenges such as an aging population, labor shortages, and workplace stress. Nvidia stated that the supercomputer will facilitate Japan's initiatives to integrate AI across telecommunications, robotics, and healthcare sectors.
The collaboration comes at a time of soaring demand for Nvidia's chips, as businesses and nations race to secure supplies to enhance their AI capabilities. Nvidia stands as one of the few key players in this domain, solidifying its position for those looking to leverage AI to boost their operations or economies.
Earlier this year, Jensen Huang unveiled the new Blackwell chip lineup, although production delays hindered its initial rollout. While Huang has assured that supplies will be abundant as manufacturing scales up, customers are eagerly awaiting the arrival of the first new chips.
During Nvidia's AI Summit in Tokyo, Son joined Huang on stage and shared a lighthearted moment when reminded of SoftBank's previous stake in Nvidia, which would be valued at approximately $178 billion today. This prompted laughter and a warm embrace between the two executives.
Nvidia has been actively hosting global events to promote what it refers to as the new industrial revolution, with recent gatherings in India and Japan aimed at expanding AI system deployment and reducing reliance on a limited number of large U.S. clients.
In addition to the new supercomputer and plans for a second, SoftBank’s telecom unit will leverage Nvidia technology to provide AI services over cellular networks. Traditional hardware, built on customized chips optimized for mobile data traffic, is not ideal for the demands of emerging AI services.
Zainab Y.
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