SoftBank preps forays into AI data center batteries, chips

Logo of SoftBank Group Corp.

SoftBank Group Corp.’s mobile unit plans to expand into selling AI computing power and the manufacture of large-scale battery cells to address growing demand for AI-related hardware.

SoftBank Corp. will provide neocloud services and specialized infrastructure geared for AI training in Japan, Chief Executive Officer Junichi Miyakawa said Monday. The company will also partner with South Korea’s Cosmos Lab and DeltaX Co. to mass-produce batteries at its Sakai, Osaka plant from the fiscal year starting next April, according to Bloomberg.

Japan’s third-largest wireless unit is one of the biggest cash generators inside Masayoshi Son’s investment group, which has accumulated investments in hundreds of loss-making startups. The forays into neocloud services and batteries are part of a group-wide push into hardware and Son’s ambition to carve out a bigger role for SoftBank in the global AI race.

The company said battery production will begin during the fiscal year ending March 2028, with large-scale commercial production starting the following year, targeting the construction of energy storage systems with a capacity of up to one gigawatt-hour per year.

SoftBank plans to use the batteries to power its artificial intelligence data centers, as well as supply power grids, factories, and the industrial sector, with the potential for future expansion into international markets.