Rakuten Ventures into AI: Rakuten, the Japanese fintech-to-e-commerce giant, is gearing up to launch its proprietary artificial intelligence language model (LLM), according to CEO Hiroshi Mikitani. In an interview Mikitani shared that Rakuten is developing its large language model using its diverse data sets from businesses spanning banking, e-commerce, and telecommunications. The aim is to leverage the LLM internally, enhancing operational efficiency and marketing by 20%. Additionally, Rakuten plans to extend the model to third-party businesses, emulating the strategies of global tech giants like Amazon and Microsoft.
Mikitani highlighted the uniqueness of Rakuten’s data, giving them a competitive edge. While there’s no specific timeline for the launch, an announcement related to the large language model is anticipated within the next couple of months.
The move reflects a broader trend among major global tech players, with U.S. companies like OpenAI, Amazon, and Google already venturing into large language models. In China, Baidu, Alibaba, and Tencent have also made significant strides in this space.
Japanese firms, traditionally seen as lagging in AI development, are intensifying efforts to catch up. NTT recently announced the availability of its proprietary LLM in March, signaling a push for competitiveness in the AI landscape. SoftBank’s telecommunications arm has also operationalized its generative AI computing platform.
One notable advantage for Japanese firms is the potential to create LLMs tailored to the Japanese language, presenting an opportunity to distinguish themselves from U.S. and Chinese rivals.
Mikitani is optimistic about Rakuten’s foray into AI, foreseeing “huge profitable growth” as the company embraces innovation in this rapidly evolving technological landscape.
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Our Reader’s Queries
How much investment is going into AI?
The Organization for Economic Cooperation and Development (OECD) reports that AI received a whopping 21% of global VC investment in 2020, amounting to an estimated $75 billion. This is a significant increase from the 4% share of $3 billion in 2012.
What country owns Rakuten?
Rakuten Group, Inc. is a Tokyo-based technology conglomerate established by Hiroshi Mikitani in 1997. The company boasts a wide range of services and products, catering to various industries. With its unique approach to business, Rakuten has become a household name in Japan and beyond. The company’s success can be attributed to its innovative spirit and commitment to providing top-notch services to its customers.
What do you know about Rakuten?
Back in 1997, Rakuten kicked off its journey with Rakuten Ichiba, a B2B2C marketplace, with a mere six employees, one server, and 13 merchants. The company’s mission was to “empower people and society through innovation and entrepreneurship,” and it didn’t take long for the Rakuten group to expand its reach with regional headquarters worldwide.