One of Japan’s financial sector leaders is jumping head-first into the artificial intelligence (AI) race. SoftBank Group (OTCMKTS:SFTBY) wants to develop its own generative AI (genAI) model specific to the Japanese language. Over the next two years, the corporation is expected to invest $960 million into this new venture in order to properly boost its computing facilities. Such an endeavor requires highly advanced graphics processing units (GPUs). Like many other tech companies, SoftBank is turning to Nvidia (NASDAQ:NVDA) to supply these essential devices. News of this powerful new customer is helping NVDA stock rise today. This comes after the Silicon Valley darling began this week with a dip, though it has since rebounded.

What This Means for NVDA Stock

There’s no denying that SoftBank’s new AI venture will end up benefiting both its own shares and NVDA stock. This comes at a good time for Nvidia. Despite its impressive growth over the past year, the AI chipmaker has been trending downward over the past month. Wall Street analysts are optimistic that the powerful tech stock will rebound. But even so, a large-scale order from SoftBank puts it in an excellent position to make up the ground it has lost.

The Japanese conglomerate is going all in on its new language model. This means that companies helping build it will enjoy the momentum that will send SFTBY stock up as progress continues. As Nikkei Asia reports:

“Generative AI is starting to be integrated into services and products in various industries. According to the latest forecast by Statista, a German research specialist, the Japanese generative AI market is expected to grow to around $13 billion by 2030, which is 17 times larger than in 2023.”

That type of ample growth opportunity should reassure investors that NVDA stock will benefit from a substantial growth catalyst in the coming year. Experts at KeyBanc recently praised it as a “top idea” for gaining valuable exposure to the booming AI sector. SoftBank’s recent announcement reaffirms that Nvidia is better positioned than ever to continue growing, as demand for its products isn’t slowing down.

These days, most companies in the tech space are either developing their own AI models or are trying to start. Nvidia has benefitted from the AI gold rush more than any other company. Adding SoftBank to its client list will only help it keep growing in 2024 as AI enthusiasm continues to mint new market winners.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.