OpenAI in Asia: Microsoft-backed artificial intelligence startup OpenAI inaugurated its first Asia office in Tokyo, Japan, signalling its intent to expand its global footprint and tap into new revenue streams. With its ChatGPT generative AI chatbot, which has garnered widespread consumer interest since its launch in late 2022, OpenAI is now targeting the Japanese market.

CEO Sam Altman and COO Brad Lightcap have been engaging with executives from hundreds of Fortune 500 companies in the United States and Britain to secure business partnerships. Altman's discussions with Prime Minister Fumio Kishida last year paved the way for considering a presence in Japan. OpenAI has also established offices in London and Dublin as part of its global expansion strategy.

Japan, aiming to boost its competitiveness against an assertive China and address labour shortages through digital transformation, sees AI as a critical asset. OpenAI revealed the development of a tailored model optimised for the Japanese language and appointed Tadao Nagasaki, former president of Amazon Web Services in Japan, to lead its operations in the country.

Despite Japan's perception as a technology laggard, local firms such as SoftBank and NTT are investing in large language models, to focus more on embracing AI innovation. Microsoft recently announced a $2.9 billion investment over two years in cloud and AI infrastructure in Japan, reflecting a broader trend of increased investment by US tech giants worldwide.

(With Reuters inputs)