[Reporter’s Notebook] Japan Challenged AI Hegemony... Korea Failed to See the Big Picture

Japanese SoftBank, which has decided to part ways with Naver, has recently revealed its ambitions in the field of artificial intelligence (AI). Junichi Miyakawa, SoftBank CEO, stated during the earnings announcement on the 9th, "We will develop our own AI beyond just providing AI from partner companies," and added, "We will use investment funds for AI services and next-generation infrastructure development."

The group has also made a bold investment. On the 12th, the Nihon Keizai Shimbun reported that SoftBank Group plans to invest 10 trillion yen (approximately 88 trillion won) in AI projects. The plan includes developing AI chips at its semiconductor design subsidiary ARM and building data centers equipped with these chips in the US, Europe, and Asia. The group is also pushing forward with the development of Artificial General Intelligence (AGI) through a project called ‘Izanagi.’ Masayoshi Son, chairman of SoftBank Group, asserted, "AGI will emerge within 10 years," and said, "Companies focused on this will lead humanity 10 or 20 years from now."

Chairman Son’s ‘big picture’ is clear. He aims to dominate the entire ecosystem from AI chips to AI models and AI services. Line Yahoo is also a necessary piece to complete this vision. It is not only an essential data warehouse for AI development but also a platform equipped with AI services that can expand into the Asian market.

The Japanese government has also stepped up its support. The Ministry of Economy, Trade and Industry announced it will provide 4.2 billion yen (approximately 370 billion won) to enhance SoftBank’s AI supercomputer. This accounts for one-third of the project’s budget allocated to SoftBank. The Liberal Democratic Party of Japan, led by Akira Amari, head of the Economic Security Promotion Headquarters and an industrial policy expert, has introduced a ‘Semiconductor Digital Industry Strategy’ with a budget of 3 trillion yen (approximately 27 trillion won). Amari, who played a political backing role for SoftBank, stated, "Fundamental reforms must be carried out, such as transferring (Line’s) control rights to Japanese companies." Signs of SoftBank’s intention to sever ties with Naver are being confirmed in various places.

However, South Korea is fixated on whether it will lose Line or not. Even then, Naver has not reached a conclusion and remains silent, while the government is only focused on Naver. There is concern that the South Korean government and the country’s leading IT companies may be failing to see the bigger picture of Japan’s challenge for AI supremacy.