SoftBank, Nvidia in Talks to Build AI Servers in Japan
TOKYO — SoftBank Group is in talks with Nvidia Corp. to manufacture AI servers in Japan, Nikkei Asia reported Wednesday, a move that could reshape global AI hardware supply chains.
The discussions center on producing Nvidia-powered servers within Japan, potentially establishing a new manufacturing base for AI infrastructure outside of the traditional supply chain hubs in Taiwan and Southeast Asia, Nikkei reported.
The partnership would pair SoftBank, Japan’s largest technology investor, with Nvidia, the dominant supplier of graphics processing units used to train and run artificial intelligence systems. Nvidia’s market capitalization has surpassed $2.5 trillion on the back of surging demand for its AI chips from cloud providers and enterprise customers worldwide.
For SoftBank, led by founder Masayoshi Son, the deal would deepen the company’s pivot toward AI infrastructure after years of investing in software and internet companies through its Vision Fund. Son has repeatedly signaled his ambition to make SoftBank a central player in the AI era, including through major investments in AI chip design and data center capacity.
The potential agreement has implications for the United States. Nvidia, headquartered in Santa Clara, California, has faced increasing pressure from Washington to manage where its most advanced chips end up, particularly amid ongoing US export restrictions targeting China’s access to cutting-edge AI semiconductors.
A Japan-based manufacturing operation would align with broader US policy objectives to diversify semiconductor and AI hardware supply chains among allied nations. The US and Japan have strengthened their technology partnership in recent years, with both governments investing in domestic chip production and agreeing to coordinate on export controls for advanced technologies.
Japan has been pursuing AI sovereignty, with the government backing major investments in domestic AI infrastructure. The country has sought to reduce its dependence on foreign cloud providers and establish itself as a regional hub for AI computing power.
The talks come as global demand for AI server capacity continues to outstrip supply, with major technology companies spending tens of billions of dollars annually on data center buildouts. Domestic production in Japan could help SoftBank secure preferential access to Nvidia’s hardware while supporting Japan’s broader technology ambitions.
Neither SoftBank nor Nvidia has publicly commented on the negotiations, according to the Nikkei report. The terms and timeline of any potential deal remain unclear.
