Emerging Markets
by Martin Abbott on December 11, 2023

Rakuten’s AI Revolution: Redefining Tech Standards with a Proprietary Model

In a groundbreaking move that signals a significant leap in the realm of artificial intelligence, Japanese tech giant Rakuten is set to unveil its proprietary AI model. With a reputation for innovation and a global presence spanning e-commerce, fintech, and telecommunications, Rakuten’s foray into developing its own AI model is poised to redefine industry standards.

This strategic move underscores the company’s commitment to staying at the forefront of technological advancements. As the world eagerly anticipates the unveiling, the implications of Rakuten’s proprietary AI model on diverse sectors are sure to reverberate, marking a pivotal moment in the convergence of technology and commerce.

Rakuten Unveils Ambitious Plans for Proprietary AI Model, Aiming for Pioneering Growth in the Global Tech Landscape

In an exclusive interview with CNBC, Rakuten, Japan’s tech behemoth, disclosed plans to launch its proprietary artificial intelligence (AI) language model, a strategic move to carve a niche in the rapidly evolving AI landscape. Hiroshi “Mickey” Mikitani, the CEO, revealed that Rakuten is actively developing a large language model (LLM), leveraging the vast and distinctive datasets derived from its multifaceted businesses, encompassing banking, e-commerce, and telecommunications.

Mikitani emphasized the unparalleled nature of Rakuten’s dataset, asserting that “nobody has a dataset like we do.” The company’s intent is not only to enhance internal operations and marketing efficiency by 20% using the AI model but also to extend its usage to external entities, mirroring the model adopted by tech giants such as Amazon and Microsoft.

The CEO expressed a commitment to facilitating seamless adoption by third-party businesses, envisioning a scenario where Rakuten could “easily teach them, package it, and provide the platform for them to completely use it for their business.” While Mikitani hinted at a potential launch within a couple of months, a Rakuten spokesperson clarified the absence of a strict timeline, suggesting an announcement related to the large language model could be on the horizon in the coming months.

Rakuten’s venture into the realm of AI aligns with a broader trend in the tech industry, where major players in the U.S. and China have already unveiled their large language models. Notably, OpenAI, Amazon, and Google have made significant strides in the U.S., while Baidu, Alibaba, and Tencent have been at the forefront in China.

Japanese companies, though perceived as trailing their U.S. and Chinese counterparts in AI development, are swiftly catching up. NTT, a telecommunications group, has slated the release of its proprietary LLM for March, and SoftBank’s telecommunications arm has announced the operational status of its generative AI computing platform.

Crucially, Japan’s focus on developing language models specific to the Japanese language offers a unique advantage, potentially positioning the country’s firms ahead of U.S. and Chinese rivals in catering to regional nuances. Mikitani is optimistic about the AI push, foreseeing “huge profitable growth” for Rakuten in this transformative journey into artificial intelligence. As the global tech landscape evolves, Rakuten’s foray into proprietary AI models underscores its commitment to innovation and sustainable growth.

Rakuten’s AI Foray: Shaping Market Dynamics and Paving the Way for New Frontiers in AI Development

Rakuten’s entry into the proprietary AI model arena is poised to significantly impact the market, ushering in transformative changes and creating novel opportunities within the AI landscape. By developing its own large language model (LLM), Rakuten is not only seeking to enhance internal operational efficiency and marketing strategies but is also laying the groundwork for broader industry implications.

One immediate effect is the potential disruption of the existing AI market, challenging established players and fostering healthy competition. Rakuten’s diverse business portfolio provides a unique dataset, setting the stage for the creation of AI models specifically tailored to Japanese language nuances. This not only positions Rakuten as a key player in the regional market but also opens doors for collaboration with businesses seeking culturally sensitive AI solutions.

The move mirrors global trends where major tech companies like Amazon and Microsoft have successfully extended their AI capabilities to third-party businesses. Rakuten’s vision to offer its AI model externally introduces a new avenue for businesses to leverage cutting-edge AI technology without the need for extensive in-house development.

Moreover, this initiative accelerates Japan’s AI development, enabling the country to bridge the gap with U.S. and Chinese counterparts. The emphasis on language models catering to Japanese intricacies presents a unique opportunity for Japanese firms to lead in providing AI solutions specific to their market.

As Rakuten positions itself on the forefront of AI innovation, the broader implications ripple through the industry, fostering an environment of rapid advancements and collaboration. The company’s foray into proprietary AI models serves as a catalyst for shaping the future of AI development, offering not only technological breakthroughs but also fostering a dynamic marketplace with diverse opportunities for growth and collaboration.

By Martin Abbott

Martin has been a Trader for 5 years now. He has experience in trading Forex, stocks, and cryptocurrencies. His insight on news and brokers has been refining for the past 3 years. His close connection to the markets enables him to write amazing copy for all of his readers.

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