What brand is pioneering the development of “Japanese-made” generative AI? The support of US NVIDIA is also NTT and ABEJA

Generative AI also has fields such as images and speech, but LLM is responsible for processing in language fields such as chatbots, translation, and summary tasks. Overseas LLMs learn mainly English text data, so they have high ability to respond in English, but further improvement of Japanese proficiency is required for use in operations that require understanding of Japanese business customs and culture, such as customer service and customer support within Japan.Demand for highly accurate Japanese LLMs that have learned mainly Japanese data from the public and private sectors from the viewpoint of security and security is growing.

The stocks that have announced that they have already developed their own LLM, but the year-to-date (since listing) rate of increase in stock prices has remained 25% or less are as follows.

◆Nippon Telegraph and Telephone (9432)
It has a monopoly on landline telephones and has a high market share in optical lines. In the consolidated financial results for the fiscal year ending 23/4/9, profit declined for the first time in 3 years due to poor regional communication services such as landline telephones and system investment, but operating income, which corresponds to sales, hit a record high. NTT DATA's system development and data center business grew. NTT DOCOMO, the main force, was also doing well. It has entered the autonomous driving business, such as investing approximately 10 billion yen in a US startup that develops autonomous driving systems.

◆CyberAgent (4751)
Consolidated net profit and loss for the fiscal year ending 23/9 declined due to the stalling of the popular game “Uma Musume Pretty Derby,” etc., but for the full fiscal year ending 24/9, sales are expected to increase 4% from the previous fiscal year to 750 billion yen, and net profit is expected to increase 50% to 8 billion yen. Recently, we announced the development of generative AI (artificial intelligence) that creates images of backgrounds and products used in advertisements. Location is no longer needed, and it is said that advertisement production can be made more efficient. The business/management department is promoting the use of artificial intelligence (AI), and plans are to reduce existing operations by 60% by 2026.

◆ABEJA（5574）
We develop AI systems and provide DX (digital transformation) support for client companies. Established in 2012, a capital and business alliance was formed with Sompo Holdings in '21. It was listed on 6/13 this year, and the initial price set on the 14th was 4980 yen, which is 3.2 times the public offering price of 1550 yen. After the high price was updated to 13,300 yen on the 22nd of the same month, it fell, and the lackluster movement continued. Sales have continued to grow in the 3 years since '21. Sales for the fiscal year ending 23/8, which were the first full-year financial results after listing, increased 40.3% from the previous fiscal year due to strong DX demand, and net profit turned into a surplus. Sales for the fiscal year ending 24/8 are expected to increase 25% to 3.47 billion yen, and net profit is expected to decrease 8% to 388 million yen.