Nvidia Corp (NASDAQ:NVDA) and SoftBank Group (OTC:SFTBF) (OTC:SFTBY) announced a partnership on Tuesday to establish Japan's most powerful artificial intelligence supercomputer, marking a significant step in the country's push to become a global AI powerhouse.

What Happened: The collaboration unveiled at the Nvidia AI Summit Japan, centers on SoftBank's implementation of Nvidia's advanced Blackwell platform and plans to utilize the Nvidia Grace Blackwell platform for future supercomputing initiatives.

"Japan has a long history of pioneering technological innovations with global impact," said Jensen Huang, Nvidia's founder and CEO. "With SoftBank's significant investment in Nvidia's full-stack AI, Omniverse and 5G AI-RAN platforms, Japan is leaping into the AI industrial revolution."

SoftBank has successfully piloted the world's first combined AI and 5G telecom network using Nvidia's AI Aerial platform. This innovation could potentially generate billions in new revenue for global telecom operators by transforming base stations from cost centers into AI revenue-producing assets.

"Countries and regions worldwide are accelerating the adoption of AI for social and economic growth," said Junichi Miyakawa, SoftBank's president and CEO. "Through our long collaboration with Nvidia, SoftBank is leading this transformation from the forefront."

The partnership includes several key initiatives:

• SoftBank will receive the world's first Nvidia DGX B200 systems for its new DGX SuperPOD supercomputer
• Development of an AI marketplace using Nvidia AI Enterprise software
• Implementation of Nvidia's AI-RAN solution, which SoftBank estimates can reduce power consumption by 40% compared to traditional 5G infrastructure

Why It Matters: The collaboration represents a strategic shift for both companies, with SoftBank estimating potential returns of up to 219% for each AI-RAN server added to its infrastructure. The company plans to begin global deployment of its AI-RAN solution, dubbed "AITRAS," in 2026.

This partnership follows SoftBank's recent moves in the AI sector, including its $960 million investment commitment for developing Japanese-language AI models and its acquisition of UK-based chipmaker Graphcore.

The initiative is expected to accelerate Japan's position in the global AI race while providing new opportunities for telecommunications, transportation, robotics, and healthcare industries.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.