Artificial intelligence (AI) startup and ChatGPT creator, OpenAI, has signalled its intent to tap into Japan’s growing AI market by inaugurating its first office in Tokyo, which also stands as OpenAI’s first office in Asia.
In a video message, OpenAI CEO, Sam Altman, expressed his optimism about the 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.”
The move aligns with OpenAI’s intents to diversify its revenue streams globally, leveraging the success of its ChatGPT generative AI chatbot, which launched in late 2022. Altman and Chief Operating Officer (COO) Brad Lightcap have been actively engaging with Fortune 500 executives in the United States and Britain to pitch for business opportunities.
Altman’s interest in establishing a presence in Japan was sparked after meeting Prime Minister Fumio Kishida last year. OpenAI has already set up offices in London and Dublin, as it seeks to expand its global footprint.
Japan, eager to harness AI technology to compete with China and address labour shortages, presents a fertile ground for OpenAI’s growth ambitions. “We have a backlog of demand,” OpenAI’s COO stated during a press briefing in Tokyo, hinting at the potential for significant contributions from Japan over time.
Highlighting its readiness for the Japanese market, OpenAI has developed a custom model optimised for the Japanese language. Tadao Nagasaki, former president of Amazon Web Services in Japan, has been appointed to lead the Japan business.
While Japan has traditionally been perceived as trailing behind in technology, local companies such as SoftBank and NTT are investing in large language models. Also, OpenAI’s clientele in Japan includes automotive giant Toyota Motor, manufacturer Daikin Industries, and various local government entities.
Microsoft’s recent announcement of a $2.9 billion investment in cloud and AI infrastructure in Japan further proves the country’s growing significance in the global AI landscape.
