Rakuten Prepares to Unveil ‘Highly Distinctive’ AI Language Model, Expects Profitable Growth

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Rakuten, the prominent Japanese e-commerce player, has revealed its upcoming venture into the artificial intelligence (AI) realm with plans to launch an in-house large language model (LLM) within the next two months. In a recent conversation with CNBC, Hiroshi “Mickey” Mikitani, Rakuten’s CEO, shared insights into the company’s ambitious project, leveraging its diverse dataset from extensive business operations in banking, telecommunications, and e-commerce.

Rakuten’s unique dataset, a result of its multifaceted business ventures, sets it apart from its tech industry peers. Mikitani emphasized the company’s intention to utilize this “very unique” dataset for training its LLM, anticipating a 20% improvement in operational efficiency and marketing strategies. In a distinctive move, Rakuten plans not only to enhance its internal processes but also to extend the AI model to third-party businesses, potentially including giants like Amazon and Microsoft.

While major U.S. and Chinese tech companies have already introduced their own LLMs, Rakuten joins the league of Japanese firms striving to make a mark in this domain. Earlier this year, NTT, a telecom conglomerate, unveiled its LLM, and SoftBank initiated operations for its generative AI computing platform in November.

Mikitani envisions the foray into AI technology as a pathway to “huge profitable growth” for Rakuten. The company’s strategic move aligns with the broader trend observed during recent earnings seasons, where AI has become a central element in the business strategies of many tech companies. This development also coincides with the European Union’s progress toward regulating AI technologies, underscoring the increasing global significance of AI in the tech landscape. Rakuten’s access to a diverse dataset derived from its varied business operations positions it favorably for success in the dynamic and rapidly growing field of AI.