Key Facts
• SoftBank, NEC, Honda, and Sony Group established a new domestic AI development company.
• SoftBank and NEC will develop AI foundational models.
• Honda and Sony will apply AI to automobiles, robots, games, and semiconductors.
• The new company is named “Japan AI Foundational Model Development”.
• Each core company holds a share of about 10-20%.
• The company will employ around 100 AI developers.
• The president is a SoftBank executive leading domestic AI development.
• Nippon Steel and three mega banks (Mitsubishi UFJ, Sumitomo Mitsui, Mizuho) are minority shareholders.
• Preferred Networks, an AI developer, is expected to join development.
• Developed AI will be open to Japanese companies, adjustable for non-investors.
• Initial goal: develop AI with 1 trillion parameters, aiming for next-gen AI controlling robots.
• The Ministry of Economy, Trade and Industry (METI) will offer up to 1 trillion yen support from 2026 to 2030.
• The new company plans to apply for METI’s public offering starting late March.
• US and China lead in generative AI; Japan aims to excel in next-gen “Physical AI” for robotics.
• Major Japanese firms unite to accelerate domestic AI development and challenge global leaders.
Summary
A new Japanese AI company, “Japan AI Foundational Model Development,” has been formed by SoftBank, NEC, Honda, and Sony Group to develop large-scale domestic AI and compete with US and Chinese leaders. SoftBank and NEC focus on foundational AI models, while Honda and Sony plan to apply AI in automotive, robotics, gaming, and semiconductor sectors. The company will have about 100 AI developers and includes minority investors such as Nippon Steel and Japan’s three mega banks. Preferred Networks is also expected to participate. The AI developed will be accessible to Japanese companies beyond investors, with an initial target of creating AI with one trillion parameters and advancing toward next-generation AI capable of controlling robots. The Ministry of Economy, Trade and Industry will support selected companies with up to 1 trillion yen over five years starting in 2026. While the US and China lead in generative AI, Japan aims to leverage its strength in “Physical AI” for robotics, marking a strategic push by major Japanese corporations to regain global AI competitiveness.
