SoftBank has instructed its subsidiaries to suspend the use of DeepSeek’s AI chatbot, marking a shift in its artificial intelligence strategy, according to Digitimes Asia.
The decision follows the launch of SB OpenAI Japan, a joint venture with OpenAI aimed at integrating enterprise AI solutions into major industries. SoftBank is investing $3 billion annually into the initiative, reinforcing its commitment to OpenAI while pulling back from DeepSeek, a Chinese AI competitor.
The move comes at a time when AI governance is under increasing scrutiny, especially regarding foreign-developed AI models. Just days before the suspension, Texas officially banned DeepSeek and other Chinese AI applications over concerns about data security and potential misuse of user information. The U.S. Navy recently banned the use of DeepSeek on its networks as well.
In Italy DeepSeek AI is under investigation, with questions about its compliance with GDPR, its data storage in China, and allegations of unauthorized access to OpenAI training data.
While SoftBank has not explicitly stated that its decision was motivated by security risks, the timing suggests that regulatory trends may have influenced its shift toward OpenAI.
SoftBank Deepens AI Commitment with OpenAI
SoftBank’s strategic realignment with OpenAI was unveiled at the company’s AI-Driven Business Transformation event in Tokyo, where CEO Masayoshi Son and OpenAI CEO Sam Altman outlined their plans to bring enterprise AI into Japan’s corporate sector.
The event, attended by executives from 500 of Japan’s largest companies, introduced Cristal Intelligence, an enterprise AI system developed in collaboration with OpenAI. The platform is designed to automate corporate decision-making, manage workflows, and integrate with existing business infrastructure.
“AI Agents will autonomously handle corporate operations. Sales, marketing, finance, operations—AI will oversee everything,” Altman said at the event. “This will fundamentally change how businesses interact with AI.”
The technology will be implemented within SoftBank’s subsidiaries, including SoftBank Telecom, ZOZO, and LY, with plans for expansion across multiple industries.
SoftBank’s annual $3 billion investment in OpenAI is expected to provide a financial boost to the AI company, which has been facing rising operational costs. Despite generating $3.7 billion in revenue in 2024, OpenAI is still operating at a multi-billion loss annually, largely due to its heavy investments in AI advancements. The partnership with SoftBank is set to improve OpenAI’s financial outlook while strengthening its presence in the enterprise AI market.
DeepSeek’s Future Uncertain as SoftBank Shifts Priorities
DeepSeek, the China-based AI lab known for its efficiency and cost-effectiveness, had previously been considered by SoftBank as a viable AI provider.
Son himself had acknowledged DeepSeek’s potential, but with the launch of SB OpenAI Japan, OpenAI is now the priority. SoftBank has not clarified whether the suspension of DeepSeek is permanent or temporary.
The move also aligns with broader trends in AI regulation. With Texas banning DeepSeek over security concerns and increasing scrutiny from Western regulators, many enterprises are reconsidering their reliance on foreign AI providers.
While SoftBank has not directly linked its decision to these regulatory concerns, the shift suggests a preference for AI models that comply with the governance frameworks of Japan and its Western allies.
Japan’s Push for AI Sovereignty and Local AI Infrastructure
As part of its AI expansion, SB OpenAI Japan is working on establishing local AI data centers to reduce reliance on foreign cloud providers. The initiative reflects Japan’s push for AI sovereignty, a growing concern for governments worldwide as AI systems become increasingly embedded in national economies.
“For the first time in decades, Japan has the opportunity to lead the world in AI,” Son stated at the event. “With SoftBank, OpenAI, and our partners, we are committed to shaping the future of AI together.”
The move aligns with similar efforts in Europe and the U.S., where policymakers are pushing for stricter AI governance and control over AI infrastructure.
SoftBank’s AI Expansion Extends Beyond Software
SoftBank’s AI ambitions are not limited to software. The company is heavily investing in AI-specific hardware through Arm Holdings, its UK-based semiconductor subsidiary. Arm has been developing AI-optimized chips, with plans for large-scale production by 2025. This move places SoftBank in direct competition with Nvidia, which currently dominates the AI chip market.
Masayoshi Son has emphasized the importance of AI-dedicated hardware, stating that software advancements alone will not be enough to sustain the growing demand for AI processing power. SoftBank’s investment in AI chips signals its long-term strategy of controlling both the software and hardware layers of AI infrastructure, ensuring that its AI ambitions are not constrained by third-party suppliers.
Beyond hardware, SoftBank is also investing in energy solutions to support AI’s increasing power demands. The company recently participated in a $425 million funding round for Helion Energy, a nuclear fusion startup aiming to supply Microsoft with clean energy by 2028.
The investment reflects SoftBank’s understanding that AI expansion is tied to energy efficiency and sustainability. The deal was part of a broader push toward next-generation computing infrastructure, with Sam Altman and SoftBank both backing Helion as a long-term energy provider.
Regulatory and Geopolitical Considerations in AI Adoption
SoftBank’s decision to favor OpenAI over DeepSeek is not just a business move but a reflection of the shifting regulatory environment surrounding AI. With the U.S. and allied countries placing tighter restrictions on AI technologies developed by Chinese firms, enterprises are increasingly aligning themselves with AI providers that operate within Western governance structures.
DeepSeek’s suspension could indicate a broader trend in AI adoption, where compliance with regulatory frameworks becomes just as important as technological capabilities. SoftBank’s move to secure AI infrastructure within Japan’s borders is also part of this trend, as nations seek to limit dependency on external AI providers.
SoftBank’s alignment with OpenAI and the development of SB OpenAI Japan also send a message to other Japanese corporations: the future of AI deployment will likely prioritize regulatory stability over cost-effectiveness. Companies that had previously considered Chinese AI providers may now shift toward OpenAI’s solutions, following SoftBank’s lead.
Is SoftBank’s AI Strategy A Model for Future Enterprise AI Deployment?
SoftBank’s latest AI moves place it at the center of enterprise AI adoption, not only in Japan but potentially on a global scale. The combination of software (Cristal Intelligence), hardware (Arm’s AI chips), and energy solutions (Helion Energy) suggests that SoftBank is positioning itself as a fully integrated AI provider.
Rather than relying on external infrastructure, it is building an ecosystem that can operate independently of foreign cloud services and AI chips.
The question now is whether SB OpenAI Japan will serve as a model for AI adoption in other countries. If successful, it could set a precedent for how enterprises implement AI at scale, balancing innovation with regulatory concerns. As the AI industry continues to evolve, SoftBank’s moves today could shape how AI is deployed in corporate environments for years to come.
With SoftBank betting on OpenAI, the AI industry is entering a phase where corporate and geopolitical decisions are becoming increasingly interconnected. As AI becomes a foundational part of business operations, choosing the right AI provider is no longer just a technological decision—it is a strategic one.