SoftBank's quest for AI leadership in Japan has encountered an unforeseen obstacle. The joint venture with OpenAI, announced with fanfare earlier this year, will no longer launch in summer 2025 but is now postponed to November, according to company sources and multiple reports.
This high-profile delay compounds a series of recent setbacks for SoftBank, highlighting the operational and strategic hurdles involved in building the next era of AI-powered corporate services for Japan’s largest firms.
Why did SoftBank delay the OpenAI Japan venture?
The primary reason for the delay appears to be ongoing negotiations about the joint venture’s structure and product lineup. SoftBank and OpenAI originally aimed to launch the venture SB OpenAI Japan for corporate clients by July 2025.
However, persistent differences and evolving market considerations slowed progress, pushing the launch timeline into November, months later than expected.
Leadership from both firms, including Masayoshi Son and Sam Altman, confirmed in June that discussions were still ongoing.
Further complicating matters, preparations for the necessary infrastructure, staffing, and marketing required more time than anticipated.
Market watchers say that the quickly changing AI field made stakeholders rethink their products and shared ownership agreements, leading to longer decision-making times and adjustments in the planned strategy.
Did you know?
SoftBank’s Vision Fund 2 was among the first major global investment vehicles to bet over $9 billion on generative AI startups-including OpenAI-years before ChatGPT became a household name.
How does this setback impact Japanese corporate AI plans?
Japanese corporations have eagerly awaited access to OpenAI-powered business solutions tailored for local needs. SoftBank positioned the new joint venture as a gateway for enterprise-grade AI deployed specifically for Japan’s unique business culture and regulatory environment.
The delay leaves prospective clients in a holding pattern, risking competitive disadvantage compared to early AI adopters in other global markets.
Some analysts note that the postponement might affect partner confidence and dampen momentum for AI adoption in sectors like finance, manufacturing, and telecom.
Still, many businesses remain cautiously optimistic, seeing the delay as a sign of due diligence rather than a loss of faith in SoftBank or OpenAI’s long-term potential.
What are the underlying issues with the Stargate project?
The Japan venture’s delay comes as SoftBank faces even bigger challenges with its $500 billion Stargate project in the United States. Conceived to build world-class AI data center infrastructure, Stargate remains stuck in a planning phase due to complex negotiations with partners, including OpenAI, Oracle, and Abu Dhabi’s MGX, and unresolved decisions regarding locations and funding.
SoftBank CFO Yoshimitsu Goto publicly acknowledged in August that heavy collaboration among parties slowed down the project. The delay is particularly notable since CEO Son and OpenAI’s Altman had unveiled Stargate together in January with promises of aggressive timelines and immediate investment. Months later, not a single data center has broken ground, and fundraising is yet to start.
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How is SoftBank restructuring amid AI industry hurdles?
Despite ongoing delays, SoftBank is doubling down on its AI-first strategy. The conglomerate recently announced it will lay off more than 300 global employees, nearly 20% of its Vision Fund workforce.
This move reallocates resources from the now-profitable Vision Fund portfolio toward massive capital investment in artificial intelligence research and infrastructure.
Unlike previous cost-cutting rounds prompted by portfolio losses, these layoffs follow Vision Fund’s strongest quarter since 2021, with gains supported by stakes in Nvidia, Coupang, and other tech leaders.
The restructuring signals a refocus on fewer, larger bets, mirroring Masayoshi Son’s classic high-risk strategy in the AI arms race rather than the broader venture approach of earlier years.
What does this delay reveal about AI investment risks?
SoftBank’s recent struggles underscore how capital-intensive and complex large AI projects, especially those requiring global partnerships, can be.
Managing competing interests, regulatory constraints, technological change, and high expectations creates unique risks, even for experienced investors.
These delays have led some to question SoftBank’s ability to execute on its ambitious AI blueprint, despite the company’s large cash reserves and storied track record in tech investing.
However, observers note that AI’s fast-moving environment often favors patience over speed. A well-executed launch, even after a delay, could restore momentum and secure SoftBank’s place in the vanguard of Japan’s AI transformation.
SoftBank’s leadership continues to express confidence in the fundamental value of their AI push.
With billions already committed and more on the line, the outcome of these delays will shape the company’s trajectory and the wider Japanese AI landscape for years to come.
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