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SoftBank Group Corp. is set to be the first to build a supercomputer powered by Nvidia Corp.'s latest Blackwell chip design, reflecting the Japanese company’s drive to advance in AI.

SoftBank’s telecom division plans to create Japan’s most powerful AI supercomputer to support a broad array of local services, the companies announced. This computer will utilize Nvidia’s DGX B200, which combines CPUs with specialized AI accelerator chips. A subsequent project will feature the more advanced Grace Blackwell version.

Shares in SoftBank Corp., Japan's third-largest wireless carrier, reversed earlier losses and rose 1% on Wednesday, while the broader SoftBank Group saw a 1.7% decline.

Nvidia’s chips are highly sought after by major global tech firms to power and run AI models, which involve processing large volumes of data — a task particularly suited for AI accelerator chips.

The deal signals that SoftBank, which held a 4.9% stake in Nvidia until early 2019, has secured a prime position to access these chips. SoftBank founder Masayoshi Son has expressed bold ambitions for AI investment, recently celebrating SoftBank's return to profitability due to rising tech valuations.

Nvidia’s CEO Jensen Huang announced the Blackwell series earlier this year, but supply issues delayed its release. While Huang has assured that availability will increase as production scales up, demand for the first batch of chips is intense.

During Nvidia's AI Summit in Tokyo, Son joined Huang on stage. Reflecting on SoftBank’s former Nvidia stake, which would now be worth around $178 billion, Son laughed and embraced Huang.

Nvidia has been promoting what it calls a new industrial revolution, with events in India and Japan aimed at expanding AI applications beyond large U.S.-based clients and into country-specific initiatives.

In addition to its new supercomputer project, SoftBank’s telecom division will also deploy Nvidia technology to deliver AI services over cellular networks. Traditional mobile hardware, focused on maximizing data traffic, is not optimized for AI tasks. “This will result in an AI grid spanning Japan,” said Huang, transforming the network into an AI-enhanced communications system.

These AI-based radio access networks (AI-RANs) will be better equipped to support remote robotics, autonomous vehicles, and other services while using less energy. SoftBank’s telecom unit plans to test the network with partners Fujitsu Ltd. and IBM’s Red Hat.

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

According to Son, Japan is on the brink of change, as the government has taken steps to support AI and robotics advancements. The Japanese government has set aside ¥4 trillion ($26 billion) to expand domestic chip production, including Rapidus Corp.'s project to build a leading-edge foundry to rival Taiwan Semiconductor Manufacturing Co., which produces Nvidia chips. Additionally, Prime Minister Shigeru Ishiba has promised over $65 billion in new funding for the semiconductor and AI industries.

“But they should encourage even more,” Son told Huang. “This is the moment for a reset and for Japan to catch up in this revolution. We can’t afford to miss this opportunity.”

Paraphrasing text from "Bloomberg" all rights reserved by the original author.