SoftBank and OpenAI say AI demand is unstoppable

Masayoshi Son, founder and CEO of SoftBank Group, and Sam Altman, co-founder and CEO of OpenAI, have highlighted the growing demand for AI-driven systems.

This surge in interest is pushing AI companies to ramp up the development of advanced computing power. During a video conference at SoftBank World, industry leaders discussed strategies for integrating AI into business operations. Two participants argued that advancing AI technology could generate more employment opportunities.

They also mentioned the advantages of developing robots. According to them, this will be a game changer, strengthening the beginning of the self-development cycle.

Son and Altman highlight the importance of developing AI in daily operations 

Son and Altman engaged in a lengthy discussion on AI. Son asked Altman about some of the decreasing benefits of expanding further. In response, Altam stated that as they lower the cost of AI, more people will be interested in using it.

He further explained that if, by any chance, they could make AI ten times cheaper, then people would want to use it thirty times more or even more than that. The need for AI in the world appears to be very high, the OpenAI CEO added.

This discussion took place before a group of Japanese entrepreneurs and industry executives, and the conversation’s main idea was self-propagating innovation.

In addition, the CEOs choose different topics that each clarified to their audience. For instance, Altman dealt with robots, emphasizing the creation of robots capable of developing other robots. On the other hand, Son focused on AI agents training themselves and then proceeding to make their kind, which, according to him, would significantly boost productivity.

This year, Son has set a target to deploy at least one billion AI agents in his company. On top of this, he will create an operating system for the agents.

Another factor highlighting Son’s strong support for the AI ecosystem is his joint venture with OpenAI, in which SoftBank’s telecom division and OpenAI will each own equal shares. The joint venture was made public in February.

Son’s plans also include OpenAI’s artificial intelligence projects, such as adding new functionalities to its ChatGPT, in this venture. It will also power Crystal Intelligence, a more advanced enterprise AI, for local businesses such as car manufacturers and retailers.

Meanwhile, businesses within the SoftBank group have expressed interest in using products from OpenAI and plan to put in roughly $3 billion per year to gain access to their service.

Son demonstrates his eagerness to invest more in AI as demand for it surges

Son has announced that his connection with OpenAI is beyond being viewed as just business partners. He then unveiled the big visions that his company has for OpenAI. According to him, SoftBank plans to invest approximately $30 billion in the company; however, there is a condition to this.

SoftBank Group’s CEO asserted that this plan would be achieved only if OpenAI made some adjustments to its operations, which he referred to as complicated.

Son also partnered with Altman to secure the $500 billion Stargate project. This project aims to ensure the creation of several data centers and other AI computing centers in the US.

Following their partnership, Altman explained to Son the requirements they needed to enhance their AI expansion goal. He stated that as they venture into this goal of expanding in the future, well past 10 gigawatts, they will require new technologies and fresh construction methods.

However, they did not tackle the challenges faced in achieving the energy supply for this big project. They also did not highlight alternatives, considering that their expectations for a massive demand for AI may not come to fruition.

SoftBank shares jumped 38%, the most since 2005. Markets psychologically reacted to this landmark, telling Son his plans are reproductive. They also acknowledged his enthusiasm for higher spending on useful initiatives.

Even after its spike in shares, SoftBank’s stock is still trading at a price below the firm’s net worth. Some analysts think this might be due to the company’s complex funding approach.

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