SoftBank Group Corp. and its telecom unit are launching SB Neo, a venture that will begin renting AI computing resources, including chips and cloud services, to large US companies starting next fiscal year. The initiative marks a significant expansion into the AI infrastructure market for the Japanese conglomerate.
This move positions SoftBank to compete with major cloud providers like Amazon Web Services and Microsoft Azure in the rapidly growing AI computing space. The company aims to capture demand from enterprises seeking specialized hardware and capacity for training and running AI models.
The target is to provide 10 gigawatts (GW) of capacity in the US by 2030, a scale that would rival some of the largest data center operators. The venture will leverage SoftBank's existing telecom infrastructure and relationships with chip suppliers, though specific partners or technology providers were not disclosed.
If successful, SB Neo could reshape the AI cloud market by offering an alternative to established hyperscalers, particularly for compute-intensive workloads. However, achieving 10GW of capacity will require massive capital investment and navigating regulatory hurdles for energy and data center construction.
Analysts note that SoftBank's track record in infrastructure is mixed, and the venture faces an uncertain path given the capital intensity and competition from existing players.