😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

OpenAI bids for Japan business as it opens Tokyo office

Published 04/15/2024, 02:48 AM
Updated 04/15/2024, 07:17 PM
© Reuters. File photo: Sam Altman, CEO of ChatGPT maker OpenAI, attends an open dialogue with students at Keio University in Tokyo, Japan June 12, 2023. REUTERS/Issei Kato/File photo

By Sam Nussey

TOKYO (Reuters) -Microsoft backed artificial intelligence startup OpenAI made a pitch for business in Japan on Monday as it opened its first Asia office in Tokyo.

"This is just the first step in what I hope will be a long-term partnership with the people of Japan, government leaders, businesses and research institutions," OpenAI CEO Sam Altman said in a video message.

The startup, which has caused excitement among consumers since the launch of its ChatGPT generative AI chatbot in late 2022, is looking to grow new sources of revenue globally.

Altman and Chief Operating Officer Brad Lightcap have hosted hundreds of Fortune 500 company executives in the United States and Britain this month to pitch for business, Reuters has reported.

Last year Altman said he was considering a Japan location after meeting Prime Minister Fumio Kishida. The startup has also opened offices in London and Dublin.

Japan hopes to take advantage of AI as it looks to compete with an increasingly assertive China, accelerate the shift to digital services and alleviate deepening labour shortages.

"We have a backlog of demand," Lightcap told reporters in Tokyo, adding that "we expect a meaningful contribution from Japan over time," without providing details.

OpenAI said it has a custom model optimised for the Japanese language and that Tadao Nagasaki, who was president of Amazon (NASDAQ:AMZN) Web Services in Japan, is heading the Japan business.

While the country is seen as a laggard in the technology, local companies including telcos SoftBank (TYO:9984) and NTT are investing in large language models.

© Reuters. Journalists are silhouetted at OpenAI’s press conference about the opening of its first Asia office in Tokyo, Japan April 15, 2024. REUTERS/Kim Kyung-Hoon

OpenAI's customers in Japan include automaker Toyota Motor (NYSE:TM), manufacturer Daikin Industries and local government.

Microsoft (NASDAQ:MSFT) said last week it would invest $2.9 billion over two years in cloud and AI infrastructure in Japan, part of a wave of investment globally by U.S. tech giants.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.