Rakuten, a global leader in internet services, is set to unveil its large language model (LLM). The announcement, made by CEO Hiroshi “Mickey” Mikitani, comes as a strategic step in harnessing the potential of AI to revolutionize various sectors of its expansive business, which includes banking, telecommunications, and e-commerce.
Rakuten’s approach to AI development is unique due to its access to a diverse and extensive dataset due to its varied business ventures. This rich data source is expected to be the cornerstone in training the LLM, with Mikitani highlighting its potential to enhance operational efficiency and marketing strategies by an impressive 20%.
AI integration: A competitive edge
The integration of AI technology is not just an internal strategy for Rakuten. The company plans to extend its AI capabilities to third-party businesses, potentially aligning itself with tech giants like Amazon and Microsoft. This move signals Rakuten’s ambition to be a significant player in the AI market, a domain currently dominated by American and Chinese tech behemoths like OpenAI, Google, Baidu, Alibaba, and Tencent.
Japanese companies are rapidly catching up in AI, with NTT and SoftBank already making headlines earlier this year for their advancements in AI and generative computing platforms. Rakuten’s entry into this space, expected to materialize in the coming months, underscores the growing importance of AI in the global technology landscape.
The broader AI landscape and Rakuten’s role
The shift towards AI is evident in the broader technology sector, as highlighted by the surge in AI discussions during the latest earnings season. This trend showcases the increasing reliance of tech companies on AI to drive innovation and growth. Rakuten’s venture into AI, with its unique dataset, could provide the company with a competitive advantage in this rapidly evolving field.
Furthermore, the growing significance of AI is not lost on regulatory bodies. The European Union’s movement towards regulating AI technologies underscores AI’s critical role in today’s technology-driven world. Rakuten’s foray into AI could be timely, aligning with the global trend of integrating AI into business and regulatory frameworks.
A new era for Rakuten
As Rakuten gears up to roll out its AI model, the company stands at the cusp of a new era. The move reflects a strategic pivot towards leveraging AI for “huge profitable growth,” in the words of Mikitani. The company’s unique position, owing to its diverse dataset and ambitious plans, places it as a potential key player in the AI revolution, reshaping the tech industry. With the impending launch of its LLM, Rakuten is not just embracing AI technology; it is positioning itself at the forefront of a wave that promises to redefine the technological landscape.
