Japan Launches Domestic AI Company With 1 Trillion Yen in State Support
Japan AI Foundation Model Development Corp. has launched with backing from SoftBank, NEC, Sony, and Honda to build artificial intelligence systems Japanese companies can develop and deploy while keeping their data domestic.
Hironobu Tamba, a senior vice president at SoftBank who led the company's internal AI development, will serve as president. The company plans to apply for government funding that could reach 1 trillion yen over five years starting in fiscal 2026.
What the Company Will Do
The new firm will develop a general-purpose foundation model that serves as the base for AI for product development across Japanese industries. It will also build the data center infrastructure required to train and run these systems.
The company plans to make this foundation model available to Japanese firms for building their own AI applications without moving data offshore.
Who's Investing
SoftBank, NEC, Sony Group, and Honda each hold stakes exceeding 10 percent. Nippon Steel, Kobe Steel, and Japan's three largest banks-MUFG, Sumitomo Mitsui, and Mizuho-hold smaller portions.
Preferred Networks, a Tokyo-based AI development firm, is expected to contribute to the technical development.
Government Support
The Economy, Trade and Industry Ministry is soliciting applications for its Japan-made AI development program through a national research agency. The selected company will receive up to 1 trillion yen in support across five years.
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