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Japan's SoftBank explores homegrown AI servers with Nvidia, Foxconn, Nikkei reports

May 7, 2026 2:00 PM

May 8 (Reuters) - ‌SoftBank Corp ​has ​begun discussions with U.S. chip giant Nvidia (NASDAQ: NVDA) and Taiwanese contract ‌manufacturer Foxconn as it weighs plans ⁠to build "made-in-Japan" artificial intelligence servers, the Nikkei ‌newspaper reported on Friday.

The ‌Japanese telecom company wants to build a production system by initially assembling ​externally sourced components by the end of the decade, before eventually ⁠taking charge of the entire server manufacturing process, Nikkei ​added.

The unit will focus on high-performance servers capable of running advanced ​graphics processing units ‌at high speeds, the report also said.

The project will be ⁠part of SoftBank's medium-term management plan, which, according to Nikkei, could be announced ⁠as soon as Monday.

The development comes after Masayoshi ​Son-led SoftBank Group poured in more than $30 billion in investments in OpenAI so far, for ‌about an 11% stake, in an "all-in" bet that it ‌will emerge as a winner in ⁠the battle among ‌developers of large ​language models.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Diti ‌Pujara)

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