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Rakuten Bets Big on AI Profitability
23 Dec
Summary
- Rakuten aims to be Japan's top AI empowerment firm.
- AI cost efficiency is central to its new strategy.
- LLM version 3 is 90% cheaper to operate.
Rakuten Group Inc. is strategically expanding its artificial intelligence capabilities with the ambitious goal of becoming Japan's foremost AI empowerment company. The e-commerce pioneer is prioritizing cost efficiency in its AI development, a move led by a team that has grown to 1,000 members and is equipped with substantial computing power.
Under the guidance of Ting Cai, a veteran from Google, Rakuten is developing AI systems designed to enhance its diverse businesses while minimizing operational expenses. Their latest large language model, version 3, is reportedly 90% cheaper to operate than comparable models, achieved by segmenting tasks and utilizing smaller, specialized models.
AI is already a significant revenue driver for Rakuten, contributing ¥10.5 billion ($67 million) to operating income in 2024, with plans to double this amount in the current year. The company anticipates further growth as business customers increasingly leverage its AI tools and expertise for enhanced services.
