Four Japanese Giants Form Domestic AI Venture
SoftBank Corp., NEC Corp., Sony Group Corp., and Honda Motor Co. have jointly established a company to develop a Japanese artificial intelligence foundation model. The venture aims to reduce reliance on foreign AI systems and address economic security concerns as global competition in AI development intensifies.
A SoftBank executive will lead the company as president. Three megabanks-MUFG Bank Ltd., Sumitomo Mitsui Banking Corp., and Mizuho Bank Ltd.-along with Nippon Steel Corp. and Kobe Steel Ltd. are investors. The government is considering providing support.
Technical Development and Focus Areas
SoftBank and NEC, both holding proprietary generative AI and LLM technologies, will develop the foundation model. AI development venture Preferred Networks Inc. will provide technical collaboration.
The venture will focus on physical AI-systems that translate digital intelligence into real-world robotic action. This differs from generative AI, which produces text and images in digital space.
Sony, Honda, and other partners plan to integrate the technology into their own products and services. Japan has historical strength in robotics, and physical AI represents the next competitive frontier as countries worldwide accelerate development in this area.
Funding and Government Support
The company plans to apply for funding through the New Energy and Industrial Technology Development Organization (NEDO), a national research agency under Japan's industry ministry.
Developing domestic AI addresses a core vulnerability: relying on foreign technology for core AI systems risks undermining industrial competitiveness and exposing sensitive information to external control. This concern has made domestic AI for IT & Development a priority for Japan's economic security.
The United States and China currently lead global AI development. Japan's venture aims to close that gap with a secure, domestically controlled foundation model available to Japanese companies.
Your membership also unlocks:
