SoftBank plans to build supercomputer with Nvidia chips

by Andrea
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SoftBank will be the first company to build a supercomputer with chips using Nvidia’s new Blackwell semiconductor, in a demonstration of the Japanese company’s ambitions to catch up in the field of artificial intelligence (AI).

SoftBank’s telecommunications unit plans to build Japan’s most powerful AI supercomputer to support a wide range of local services, the two companies said. That computer will be based on Nvidia’s DGX B200 product, which combines computer processors with AI accelerator chips. A subsequent effort will feature Grace Blackwell, a more advanced version.

Shares of SoftBank, Japan’s third-largest wireless operator, reversed losses and rose 1% on Wednesday (13). SoftBank Group, which comprises the conglomerate’s investment teams, fell 1.7%.

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Nvidia’s chips have become a prized commodity for the world’s biggest technology companies, which use the components to develop and run AI models. The process requires software to be bombarded with data — something accelerator chips are especially adept at handling.

The announcement indicates that SoftBank, which until early 2019 owned 4.9% of Nvidia, secured a favorable place in line for the chips. SoftBank founder Masayoshi Son said he is preparing to “bet big” on AI investments. On Tuesday, the company reported a return to profitability with the appreciation of technologies.

Nvidia CEO Jensen Huang had announced the new Blackwell line earlier this year, but production issues delayed the launch. While Huang said supplies will be plentiful once manufacturing ramps up, customers are eager to get their hands on the first new chips.

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Son joined Huang on stage in Tokyo during the Nvidia AI Summit on Wednesday. When reminded about SoftBank’s previous stake in Nvidia — which today would be worth about $178 billion — Son made an uncomfortable expression and laughed, before wrapping Huang in a tight hug.

Nvidia has traveled the world to hold such events, promoting what it calls the new industrial revolution. Events in India and now Japan aim to broaden the deployment of AI systems in nation-based efforts and reduce Nvidia’s dependence on a few large U.S. customers.

In addition to the new computer and the plan for a second, SoftBank’s telecommunications unit will also use Nvidia equipment to provide AI services over cellular networks. Traditional hardware, based on custom chips designed to maximize mobile data traffic, is not ideal for new AI services.

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“What will result is an AI network that will work across Japan,” Huang said, adding that this would transform the communications network into an AI network.

New AI-RANs, or AI radio access networks, will be better suited for remote robotics, supporting autonomous vehicles and powering other services, Huang said. They will also require less electricity.

The telecommunications unit will begin testing the network with IBM partners Fujitsu and Red Hat.

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“We’re going to buy a lot of your chips,” Son told Huang.

Japan is on the verge of change, said the Japanese billionaire, who frequently criticizes both the country’s government and companies for their slowness in adopting new technologies. This time, the Japanese government is not hindering construction in AI and robotics, he said.

The Japanese government has allocated ¥4 trillion ($26 billion) to bolster its domestic chip production capacity. That includes an ambitious project behind Rapidus to build a state-of-the-art foundry from scratch to challenge Taiwan Semiconductor Manufacturing Co., which makes Nvidia chips. Prime Minister Shigeru Ishiba also pledged more than $65 billion in renewed support for the country’s semiconductor and AI sectors.

“But they should encourage more,” Son told Huang. “As you say, this is the reset, this is the moment of recovery for this revolution. We cannot miss this opportunity.”

© 2024 Bloomberg L.P.

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