Rakuten Set To Launch ‘Very Unique’ AI Language Model, Anticipates Profitable Growth

Japanese e-commerce giant Rakuten is set to join the ranks of tech companies entering the artificial intelligence (AI) space with the launch of its own in-house AI language model (LLM) in the next two months. The company’s CEO, Hiroshi “Mickey” Mikitani, revealed the plans in a recent discussion with CNBC.

Rakuten’s extensive business ventures, which include banking, telecommunications, and e-commerce, provide the company with a diverse dataset. Mikitani believes that this unique dataset will enable Rakuten to train its LLM in a way that enhances operational efficiency and marketing strategies by up to 20%.

Notably, Rakuten also intends to offer its AI model to third-party businesses, potentially including industry giants like Amazon and Microsoft. This move could position Rakuten as a key player in the AI market, leveraging their expertise and dataset to provide valuable AI solutions to other companies.

While tech giants from the US and China, such as OpenAI, Amazon, Google, Baidu, Alibaba, and Tencent, have already launched their own LLMs, Japanese companies are now striving to level the playing field. Earlier this year, telecom conglomerate NTT unveiled its own LLM, and SoftBank’s generative AI computing platform started operations in November.

Mikitani sees branching out into AI technology as a significant opportunity for Rakuten, predicting “huge profitable growth” in the future. The increasing importance of AI technology in business strategies is evident from the record mentions of AI during the latest earnings season.

Rakuten’s entry into the AI space also comes at a time when the European Union is moving closer to regulating AI technologies, highlighting the growing significance of AI on the global tech scene. With its unique dataset from various businesses, Rakuten could potentially gain a competitive edge in this rapidly growing field.

In conclusion, Rakuten’s plans to introduce its own AI language model demonstrate the company’s commitment to leveraging AI technology for operational efficiency and marketing strategies. With its diverse dataset and potential partnerships with other tech giants, Rakuten is poised to make a significant impact in the AI market. As the importance of AI continues to grow, companies like Rakuten are positioning themselves for future success.