Oracle Corporation (ORCL) and SoftBank (SFTBY) have teamed up to build Japan’s own AI-powered cloud system. The move is designed to make Japan more digitally independent while supporting local innovation and security. Under the deal, SoftBank and Oracle will provide secure sovereign AI and cloud solutions for businesses and government agencies throughout Japan.
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More Details About the Partnership
As part of the partnership, Oracle and SoftBank will bring Japan its own secure and reliable cloud and AI services. SoftBank will roll out a new cloud platform called Cloud PF Type A, built using Oracle Alloy, to serve key industries and government needs. The AI features will be added gradually.
For context, Oracle Alloy is a high-performance platform that helps businesses build, run, and scale AI and cloud applications.
As Japan’s digital economy grows and data volumes rise, secure and locally controlled data management is becoming essential. Using Oracle Alloy, SoftBank can offer its customers more than 200 AI and cloud services from Oracle, all hosted in SoftBank’s data centers in Japan. This means businesses in Japan can access powerful cloud and AI tools locally, ensuring faster performance and compliance with national data rules.
Notably, SoftBank will use Oracle Alloy to create a modern cloud system in its eastern and western Japan data centers, keeping all data and operations within Japan. The service will start in the eastern Japan data center in April 2026, followed by the western data center in October 2026.
Oracle and SoftBank’s Partnership
Oracle and SoftBank are already partners in the ambitious Stargate Project in the U.S. Unveiled by President Donald Trump, the $500 billion project aims to transform AI infrastructure across the country.
Last month, Oracle and SoftBank, together with OpenAI (PC:OPAIQ), announced an expansion of Stargate with five new AI data centers. This expansion will increase Stargate’s total planned capacity to nearly 7 gigawatts and involves more than $400 billion in investments over the next three years.
Is Oracle a Good Stock to Buy Now?
Overall, Wall Street has a Moderate Buy consensus rating on ORCL stock, based on 26 Buys, eight Holds, and one Sell assigned in the last three months. The average Oracle stock price target of $341.83 implies about 20.3% upside from current levels.
Year-to-date, ORCL stock has grown by over 70%.
