OpenAI Expands into Japan with Tokyo Office Opening

OpenAI, the artificial intelligence startup backed by Microsoft, has set its sights on the Japanese market as it inaugurates its first Asia office in Tokyo.

In a video message, OpenAI CEO Sam Altman expressed his enthusiasm for the new venture, stating, "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," . Altman, along with Chief Operating Officer Brad Lightcap, has been actively engaging with Fortune 500 executives in the United States and Britain to pitch for business opportunities.

OpenAI gained significant attention with the launch of its ChatGPT generative AI chatbot in late 2022. Now, the company aims to expand its revenue streams globally. The decision to establish a presence in Japan was influenced by a meeting between Altman and Prime Minister Fumio Kishida last year. OpenAI has already opened offices in London and Dublin, further solidifying its international footprint.

Japan, recognising the potential of AI, aims to leverage the technology to compete with China, accelerate the digital transformation of its services, and address labor shortages. OpenAI's Chief Operating Officer, Brad Lightcap, highlighted the demand for their services, stating, "We have a backlog of demand," and expressed optimism about the contribution Japan will make to the company's growth, although specific details were not provided.

OpenAI has developed a custom model optimised for the Japanese language and has appointed Tadao Nagasaki, former president of Amazon Web Services in Japan, to lead its operations in the country. While Japan has been perceived as lagging in technology, local companies such as SoftBank and NTT have been investing in large language models, signaling a growing interest in AI.

Among OpenAI's customers in Japan are automotive giant Toyota Motor, manufacturing company Daikin Industries, and local government entities. The company's expansion into Japan aligns with Microsoft's recent announcement of a $2.9 billion investment in cloud and AI infrastructure in the country, reflecting the increasing global investment by U.S. tech giants.

Source: REUTERS