SoftBank Group (TYO:9984) is considering developing and manufacturing AI servers domestically, with plans to begin designing and assembling some components by the end of the decade, Nikkei Asia reported Friday.
The mobile unit of SoftBank Group is focusing on high-performance AI servers capable of running advanced graphics processing units and may outline the initiative in its medium-term business plan expected as soon as Monday, the report said.
SoftBank has started talks with Nvidia and Foxconn (TPE:2317) on server development and production. The company aims to initially assemble externally sourced parts before expanding to end-to-end server manufacturing, according to Nikkei.
SoftBank is reportedly also considering establishing a production base at a former Sharp (TYO:6753) plant in Sakai, Osaka, acquired last year.
The servers would support the company's data centers and AI-RAN infrastructure, which integrates telecom base stations with AI processing capabilities, according to the report.
SoftBank's shares fell 5% in Tokyo trading recently.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)