Japanese digital infrastructure service provider Sakura Internet, backed by government subsidies, is enhancing its cloud services for generative AI. According to a report from MoneyDJ, Sakura Internet’s procurement of GPUs is set to increase fivefold from the initial plan, with purchases including NVIDIA’s latest product, the “B200,” unveiled in March.

On April 19th, Sakura announced that it has secured Japanese government subsidies to strengthen its cloud service “Koukaryoku” for generative AI. The company plans to expand the number of GPUs deployed in “Koukaryoku” to fivefold from the initially planned quantity, aiming to incorporate around 10,000 GPUs, including NVIDIA’s latest “NVIDIA HGX B200 system” introduced in March. The goal is to establish a large-scale cloud infrastructure with a computational power of 18.9 EFLOPS by the end of March 2028.

Sakura had previously received similar government subsidies in June 2023, marking this as the second time they have received such support.

Sakura announced that last June they invested JPY 13 billion, aiming to purchase approximately 2,000 NVIDIA GPUs (with a computational power of 2.0 EFLOPS) between July 2023 and March 2025. Due to significantly higher demand than expected, the procurement of these 2,000 GPUs is projected to be completed ahead of schedule by the end of June 2024.

This new investment plan, totaling around JPY 100 billion (including costs for server components other than GPUs and maintenance fees), targets additional procurement of approximately 8,000 GPUs (with a computational power of 16.9 EFLOPS) between April 2024 and December 2027.

The overall GPU procurement quantity of around 10,000 units will thus be five times the original plan of approximately 2,000 units. According to Japanese media reports, Sakura will provide server computing power equipped with these GPUs to companies engaged in generative AI research.

On April 19, the Ministry of Economy, Trade and Industry of Japan announced that in order to establish the necessary supercomputers for developing generative AI domestically in Japan, they will provide a maximum subsidy of JPY 72.5 billion to five Japanese companies, with Sakura receiving a maximum subsidy of JPY 50.1 billion.