Rakuten's decision to enter the competitive Japanese wireless market has resulted in four years of losses, impacting other segments of the company, such as its online store and financial services. However, Hiroshi Mikitani views this division as a strategic platform for scaling the business. Mobile phone users not only generate revenue but also create a unique dataset that aids in refining AI technologies.
Rakuten plans to integrate artificial intelligence across various areas of its operations. The amount of exclusive data Rakuten collects from its users is "extremely powerful," said Mikitani. "We do not intend to compete with OpenAI or Google. But we will actively build a more vertically integrated, specialized AI."
Rakuten sees opportunities in Japan, which has lagged in the adoption of digital technologies and AI-based solutions.
Although Tokyo provides significant subsidies to domestic AI providers, a clear winner has yet to emerge. Competing for the creation of a Japanese model are companies such as SoftBank Corp., Nippon Telegraph & Telephone Corp., NEC Corp., CyberAgent Inc., and, of course, OpenAI.