SoftBank establishes SB Neo for US neocloud push, launching FY27
The Japanese tech conglomerate is going after AI cloud infrastructure in the US with a new Delaware-incorporated entity built around GPU compute and energy.
SoftBank is not interested in renting space in someone else’s cloud. On July 2, 2026, SoftBank Corp. and SoftBank Group Corp. announced the formation of SB Neo, a new US-based entity incorporated in Delaware and built to compete in the neocloud market. The company is targeting a fiscal year 2027 launch for its specialized GPU cloud services.
What SB Neo actually does
SB Neo will operate as a purpose-built AI and energy infrastructure business, with GPU compute as the core product.
The underlying technology comes from SoftBank’s Japanese operation. Its AI Data Center GPU Cloud, which began rolling out in October 2026, runs on the Infrinia AI Cloud OS. That platform supports Kubernetes-as-a-Service and Inference-as-a-Service, and it runs on NVIDIA’s GB200 NVL72 GPU systems. The US entity, SB Neo, is expected to bring this same stack stateside, tailored for an American customer base and regulatory environment.
Why the US, and why now
The global neocloud market generated over $25 billion in revenue in 2025, and neocloud revenues rose more than 200% year-over-year in late 2025. The sector is projected to approach $400 billion by 2031.
One of the explicit strategic priorities behind SB Neo is keeping sensitive AI workloads within national borders. Data security and sovereignty have become genuine concerns for enterprise and government customers, and a US-incorporated entity running AI infrastructure on domestic soil addresses that concern directly.
SoftBank announced in May 2026 that its SB Energy Corp. subsidiary is planning a US IPO focused on AI data center power projects. The connection between SB Energy and SB Neo is not coincidental. SoftBank appears to be building an integrated stack: power, hardware, and cloud services under a single strategic umbrella.
What this means for investors and the broader market
SB Neo represents SoftBank Group’s continued pivot from pure venture capital bets toward owning and operating AI infrastructure directly. SoftBank’s advantages include its capital base, its existing technology stack through Infrinia, its relationship with NVIDIA given the GPU dependency, and the energy infrastructure play through SB Energy.