SoftBank’s Neocloud Venture
SoftBank is entering the neocloud sector in the United States, aiming to provide hyperscalers and other clients with a platform for AI training. The tech titan from Japan is establishing a new entity named SB Neo, Inc. to manage its US neocloud initiative, slated to commence operations in fiscal 2027 and conclude by March 31, 2028. The ownership of SB Neo? A tidy 51 percent will belong to SoftBank Corp and 49 percent to SoftBank Group Corp. SB Neo will be an integrated part of SoftBank Corp, which is itself 40 percent owned by SoftBank Group Corp. Straightforward, isn’t it?
Neocloud Surge: Rent-a-GPU Market
These neocloud providers, also known as rent-a-GPU suppliers, have sprung up rapidly, capitalizing on the soaring demand for GPU-accelerated computing power. They are specialized cloud platforms centered on AI services, you know. However, a study from the experts at McKinsey & Company last year indicated that the neocloud business model is somewhat unstable. This is due to the nature of the market being quite commoditized; there isn’t much distinction when you’re merely leasing hardware. Perhaps SoftBank possesses insights that McKinsey lacks.
Infrinia AI Cloud OS: SoftBank’s Secret Weapon?
According to SoftBank Corp, they have been operating a beta version of their GPU cloud service driven by “Infrinia AI Cloud OS” in Japan since May. This software stack is designed for AI data centers, and they are leveraging findings from this to inform their US operations. Infrinia AI Cloud OS, developed by SoftBank’s own Infrinia team, facilitates Kubernetes-as-a-Service (KaaS) within a multi-tenant context and Inference-as-a-Service (InfaaS) to provide large language model (LLM) inference through APIs.
AI Revolution? Absolutely!
SoftBank’s key figure Masayoshi Son believes, “The SoftBank Group will collaborate to establish world-class AI infrastructure and propel the AI revolution.” They also intend to build gigawatt-scale AI data centers in Japan once they are prepared. The extent of their investment remains undisclosed, but rumors suggest SoftBank Group has been negotiating with lenders for a $10 billion loan secured by its shareholding in OpenAI. Initially hesitant, lenders are now being assured by SoftBank, offering banks a safety net should the OpenAI shares used as collateral depreciate.
Bubble Discussion: Really?
Masayoshi Son reportedly took a firm stance with shareholders, declaring that any discussion about a bubble is “an insult to AI” and “blasphemy against AI if you suggest it’s a bubble.” Thus, we’ll refrain from mentioning OpenAI CEO Sam Altman himself acknowledging that we are currently experiencing an AI bubble.
Conclusion: SoftBank’s Thrilling GPU Journey
Here we find ourselves, with SoftBank plunging directly into the neocloud fever in the US. Let’s hope their GPU rental endeavor thrives, because if it fails, it will create more uproar than a sack of disgruntled Geordies. Keep an eye on gadgetlad.co.uk for more technology antics!
