SoftBank's 1 Trillion AI Push Expands Into Batteries

SoftBank Group Corp.'s (SOBKY) mobile unit is moving deeper into the AI infrastructure race, with SoftBank Corp. planning to sell AI computing power in Japan while also preparing a new push into large-scale battery cell manufacturing. Chief Executive Officer Junichi Miyakawa said Monday that SoftBank Corp. will provide neocloud services and specialized infrastructure designed for AI training in Japan, while partnering 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. The strategy could give Masayoshi Son's investment group another hardware-driven AI angle, as SoftBank looks to build a larger role in the global AI race beyond its portfolio of startup investments.The battery plan could become a key part of SoftBank's domestic AI data center strategy, since the company said it aims to build energy storage systems at a scale of one gigawatt-hour per year. That scale would make the facility one of the largest in Japan, according to BloombergNEF data cited in the source article, while Bloomberg News reported last month that SoftBank could eventually reach several GWh of capacity. The new batteries are expected to help power SoftBank's AI data centers in Japan, with the company also planning to supply batteries for grid applications, factories, industrial and residential uses, and eventually overseas markets. Miyakawa said AI demand in Japan has had a slow start, but added that SoftBank is seeing strong customer interest for its upcoming data center in Tomakomai, Hokkaido.For investors, the move matters because SoftBank's telecom arm is one of the largest cash generators inside Son's wider group, and its latest expansion comes with a sizable AI spending plan. The listed company, roughly 40%-owned by SoftBank Group, plans to invest 1 trillion ($6.4 billion) in AI-related businesses, including data centers and batteries, in the three years through March 2029, while also upgrading its nationwide mobile networks to better support AI devices such as warehouse robots. SoftBank's telecom arm expects operating income to rise 5.5% this fiscal year, in line with average analyst expectations, as higher mobile fees help revenue while AI infrastructure spending and competition for enterprise AI clients remain part of the backdrop. The company will also set up AX Factory as a hub for AI data center operations and hardware manufacturing, and GX Factory as a hub for next-generation batteries, solar panels and related products, with a goal of generating more than 100 billion ($636 million) in annual revenue from its new battery business by fiscal 2030.