Japan's tech giants unite to build trillion-parameter Physical AI model for robots and machines

Japan's Tech Titans Just Teamed Up to Build a Trillion-Parameter AI -- And It's Not Here to Chat - Decrypt

Japan's government NEDO agency has earmarked ¥1 trillion (~$6.7B) over five years, with Japanese data kept domestic and off foreign cloud infrastructure. Japan isn't interested in building the next ChatGPT. On Sunday, SoftBank, NEC, Honda, and Sony Group jointly formed a new company with one goal: build a trillion-parameter AI model that runs machines, not conversations. The move is a direct bet on what the community refers to as "Physical AI": the idea that the next frontier isn't language models that write your emails, but AI systems that control a robot arm, drive a car, or run a factory floor. Japan, with its deep industrial base and decades of robotics heritage, thinks it has a natural edge that Silicon Valley and Beijing can't easily replicate. Based on reports, SoftBank and NEC will lead the actual AI development. Honda will deploy the results in autonomous driving. Sony brings robotics and gaming hardware to the table. Preferred Networks, a respected Tokyo-based AI developer, is also involved. The company, which roughly translates in English to "Japan AI Foundation Model Development," plans to hire around 100 AI engineers, with a SoftBank executive named as president. Banks and steelmakers showed up too. Nippon Steel, Kobe Steel, MUFG Bank, Sumitomo Mitsui Banking, and Mizuho Bank are all listed as investors, so this is much bigger than a simple tech startup. The government money will flow through NEDO, a national R&D agency that has earmarked roughly ¥1 trillion -- about $6.28 billion -- in AI support over five years starting fiscal 2026. Japan AI Foundation Model Development is expected to apply and is considered a near-certain pick. Japan has spent years sending its data to U.S. cloud infrastructure and paying for the privilege -- the so-called "digital deficit" that has drained capital and left Japanese industry dependent on foreign tech stacks. The new company wants AI trained on Japanese data, staying in Japan, not feeding OpenAI or Google's pipelines. That makes for a pointed contrast with SoftBank's own global moves. The firm led OpenAI's $40 billion funding round in 2025, and now it's on the other side of the table -- anchoring a domestic model meant to chart a path independent of the same American AI ecosystem it's been bankrolling. Physical AI is heating up globally and big companies are starting to pay attention. Tesla is building its own robots, OpenAI is also supporting AI/robotics startups and China's own political plans include massive investments in this area. Earlier this year, leading stablecoin company Tether invested in humanoid robotics startup Generative Bionics, which markets its machines as "Physical AI" systems designed to fuse robotics with intelligence that perceives and acts in the world -- not just responds to prompts. The target for practical Physical AI applications is 2030, according to local reports. NEDO began accepting proposals for the funding program in late March -- meaning the clock is already running.

Japanese tech giants launch joint venture targeting physical AI for robots and machines - SiliconANGLE

Japanese tech giants launch joint venture targeting physical AI for robots and machines Japanese technology giants SoftBank Group Corp., Sony Corp. and NEC Corp. are teaming up with Honda Motor Co., Ltd. on a new artificial intelligence joint venture that has a single goal: to build a trillion-parameter model for autonomous machines. The companies are reportedly making a big bet on what has become known as "physical AI," or AI systems that operate in the real world, controlling robots, driving cars and running factories at scale. Nikkei Asia reported Sunday that SoftBank and NEC will be tasked with developing the AI, while Honda will be the first to deploy the new model in its autonomous vehicles. Sony's involvement reportedly pertains to robotics and gaming hardware, and there are other partners involved too. One is a company called Preferred Networks Inc., a Tokyo-based AI startup focused on deep learning and "internet of things" applications. The new joint venture, whose name translates to "Japan AI Foundation Model Development," plans to hire about 100 AI engineers, with a senior SoftBank executive serving as its president. A number of Japan's biggest industrial firms are also involved in the venture. Kobe Steel, Nippon Steel, Mizuho Bank, Sumitomo Mitsui Banking and MUFG Bank are all listed as investors. In addition, the Japanese government is also putting money into the project via its New Energy and Industrial Technology Development agency, which has earmarked around one trillion yen (around $6.28 billion) over the next five years. The project also has a "sovereign AI" angle to it. For years, Japanese companies have been reliant on U.S. cloud infrastructure providers and paying big money for their services, creating a "digital deficit," where capital has constantly flowed out of the country. But the new company intends to train its AI on Japanese data, and keep that data in Japan, out of the hands of companies like Google LLC and OpenAI Group PBC. That's in stark contrast to what SoftBank has been doing in the past. The company has been funneling billions of dollars into U.S. firms, notably leading OpenAI's $40 billion funding round last year. But now it sits on the other side of the table, anchoring a domestic venture that aims to be independent of the U.S. AI ecosystem. The companies didn't say when the joint venture will begin operations, but they're reportedly targeting the launch of "physical AI applications" by 2030.

SoftBank, others set up new firm to develop high-performance AI

SoftBank, NEC, Sony Group and Honda Motor have taken the lead in establishing a new company to develop Japanese-made artificial intelligence, informed sources said Sunday. The new company will make its high-performance AI available to Japanese companies for broad use, aiming to overtake U.S. and Chinese firms that are leading in this field. SoftBank, NEC, Sony and Honda each took a stake of more than 10% in the new firm, while several other firms are negotiating to invest as minority shareholders, according to the sources. Engineers from SoftBank and Tokyo-based AI developer Preferred Networks Inc. are expected to participate in the development, they said. The new company plans to apply for an AI development support program run by the New Energy and Industrial Technology Development Organization (NEDO), a national research and development agency, which began accepting proposals in late March. Under the program, a total of ¥1 trillion in assistance will be provided over five years from fiscal 2026. Ultimately, the new company aims to develop so-called physical AI that can also be used for controlling robots.

SoftBank, NEC, Sony, Honda Form New Company To Target Domestic AI Rollout, Close Gap with US And China -

Why It Matters The initiative was taken to narrow the gap with U.S. and Chinese AI leaders, with expected backing from the Japanese government, according to a report by Japan Today. The group will initially roll out the model to domestic firms, with plans to expand into factory robotics and other applications. The venture is expected to hire about 100 AI engineers and will be led by a SoftBank executive. Development will initially be spearheaded by SoftBank and NEC, with Tokyo-based AI developer Preferred Networks set to join at a later stage. The company is planning to apply for funding from the New Energy and Industrial Technology Development Organization (NEDO), a government-backed body that has earmarked up to 1 trillion yen (approximately $6.3 billion) to support domestic AI development. Major industrial and financial players, including Nippon Steel Corp, Kobe Steel Ltd, Mitsubishi MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank, have also invested in the newly established company, signaling broad-based support across sectors. SoftBank, NEC, Sony and Honda each took a stake of more than 10% in the new firm, while several other firms are negotiating to invest as minority shareholders, according to Jiji Press, a Japanese news agency. SoftBank Expanding into AI Late last month, SoftBank secured a $40 billion bridge loan to fund investments in ChatGPT maker OpenAI and support general corporate needs, underscoring its deepening push into artificial intelligence. Photo Courtesy: NP27 on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.