Rakuten Focuses on AI, Led by Profitable Mobile Arm
Despite skepticism, Rakuten Group Inc. sees its mobile venture as a strategic advantage for future growth in artificial intelligence (AI).
Rakuten, a Japanese e-commerce pioneer, entered the highly competitive wireless market four years ago, leading to initial losses. However, the mobile arm's 8 million users provide valuable data for training AI, which is expected to expand the conglomerate's business.
Hiroshi Mikitani, Rakuten's billionaire founder, emphasizes the power of the exclusive data collected from users. The company aims to develop a specialized AI, distinct from OpenAI and Google, leveraging Japan's lagging adoption of digital and AI technologies.
Rakuten's mobile business drives significant revenue through increased spending on its online shopping mall and other services, including credit card, travel, banking, and brokerage. despite the initial costs, Mikitani highlights its profitability after discounting marketing expenses.
To stay competitive, Rakuten plans to offer 100% smartphone coverage in Japan through satellite-based services. It will partner with AST SpaceMobile Inc. for satellite services starting in 2026.
Mikitani emphasizes Rakuten's goal to become a top-tier profitable company in Japan and beyond, acknowledging the ambitious nature of their strategy.