Fujitsu Invests in Cohere, a Rival to OpenAI, to Develop Japanese Language Model
Fujitsu invests in Cohere, a competitor to OpenAI, to create a Japanese language model named Takane. Takane will have a parameter count of 50 billion to 100 billion, allowing it to undertake complicated training jobs. Fujitsu intends to make Takane commercially available in September.
Cohere is well-known for competing with OpenAI, the ChatGPT developer. Fujitsu and Cohere have collaborated to create Takane, a Japanese large language model (LLM). The investment amount has not been disclosed.
Takane, the Japanese-language model, will be built on Cohere's LLM and will include Japanese business terms and other data given by Fujitsu. It is planned to have a parameter count of 50 billion to 100 billion, increasing its ability to perform complicated training jobs. In comparison, the parameter count for OpenAI's GPT-4 is 1.76 trillion.
Fujitsu intends to make Takane commercially available in September. Cohere, formed in 2019, specialised in delivering generative AI solutions to enterprises. The startup aims to reduce the number of "hallucinations" or incorrect information in AI-generated answers. Aidan Gomez, CEO and co-founder of Cohere, previously worked at Google.
In addition to its collaboration with Cohere, Fujitsu is working on an LLM with the Tokyo Institute of Technology and other partners. The company intends to extend its AI product portfolio to meet specific consumer needs. Fujitsu's corporate vice president, Yoshinami Takahashi, claimed that Takane will be utilised to promote digitisation efforts and provide solutions such as creating systems for identifying job faults in factories.
The goal for Takane is to learn a wide range of Japanese business terms, enabling the LLM to handle specialised tasks and industry-specific terminology. This will not only generate continuous income from fees but also open up opportunities for expansion into new markets. As a result, Takane is expected to have a higher profit margin compared to Fujitsu's main contract development business.
The demand for information technology services in Japan is on the rise due to the renewal of aging systems and digital transformation. However, Fujitsu's IT services division had an adjusted operating profit margin of 11% in the previous fiscal year, trailing behind Nomura Research Institute's 16%.
Fujitsu has set a sales target of 700 billion yen ($4.43 billion) for its proposal-based digital transformation support business by March 2026. This is a 90% growth over the previous fiscal year, and the corporation expects this business sector to account for roughly 20% of total consolidated sales.
According to Goldman Sachs analyst Chikai Tanaka, while costs are now the primary focus, profits are likely to contribute considerably beginning around 2025. Tanaka believes that Fujitsu's IT services division's adjusted operating profit margin would increase to 14.5% during the next three years.
Fujitsu invests in Cohere, a rival to OpenAI, to develop a Japanese language model called Takane.
Takane will have a parameter count of 50 billion to 100 billion, enhancing its ability to handle complex training tasks.
Fujitsu plans to make Takane commercially available in September.
Source: NIKKEI ASIA