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Prime Minister Sanae Takaichi announced a massive ¥370 trillion investment strategy spanning 17 critical sectors through 2041, with ¥101.6 trillion dedicated to artificial intelligence and chip manufacturing. The plan aims to strengthen economic security and address labor shortages, but economists warn about potential fiscal risks and market distortions.
Blackstone plans to invest $30 billion in Japan's AI data centres over the next three to five years, targeting facilities exceeding 1 gigawatt capacity. President Jonathan Gray dismissed concerns about AI infrastructure bubbles, arguing the risk of building too little computing capacity outweighs building too much as the firm positions itself in one of Asia's most contested AI infrastructure markets.
At SoftBank's annual shareholder meeting, founder Masayoshi Son rejected concerns about an AI investment bubble, declaring it an insult to the technology. The 68-year-old CEO outlined plans to lead the company into his 70s, targeting a $6.2 trillion net asset value built on artificial superintelligence and physical AI. With a $64.6 billion bet on OpenAI, Son is reshaping SoftBank as an AI-era industrial holding company.
OpenAI has expanded its ChatGPT advertising pilot to Japan and Korea, bringing ads to six markets total. The 19-week-old venture showcased its progress at Cannes Lions, with executives revealing cost-per-click options now dominate ad spending. Free and Go plan users will see sponsored content, while premium subscribers remain ad-free as the company diversifies revenue ahead of a planned IPO.
SoftBank and OpenAI have launched Patching as a Service, an AI-driven cybersecurity product targeting Japan's top 3,000 companies managing critical infrastructure like airports, power systems, and transportation. The service uses OpenAI's cyber models to identify vulnerabilities and advise on fixes, though human experts still handle implementation. SoftBank founder Masayoshi Son called Japan's exposure to AI-powered cyberattacks a crisis, comparing modern threats to machine guns replacing rifle shots.
Asia hedge funds posted exceptional returns exceeding 100% in early 2026, capitalizing on investments across the AI supply chain and semiconductor industry. WT Asset Management's China Focus fund gained 103%, while E20 Capital surged 136%, driven by positions in AI hardware companies and memory-chip makers. Regional funds leveraged Asia's dominance in semiconductor manufacturing to identify supply constraints early.
Japan's Digital Minister Hisashi Matsumoto warned the country could become an 'AI colony' if it falls behind in technology development. He defended a controversial bill amending personal data protection laws to let AI developers access medical and criminal records without individual consent, framing it as essential for national autonomy.
The United States and Japan have announced a five-year, $1 billion partnership to advance scientific technologies using AI. Each country will invest $500 million in the Genesis Mission initiative, focusing on quantum technologies, fusion energy, and biotechnology. The collaboration aims to accelerate research timelines and maintain technological advantage over China.
OpenAI has granted Japan's three largest banks access to its GPT-5.5 Cyber model to strengthen defenses against cyberattacks. MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank will receive the advanced AI model through OpenAI's Trusted Access for Cyber program, part of a broader US-Japan cybersecurity agreement covering 15 critical infrastructure sectors.
The Humanoids Summit Tokyo showcased the shifting landscape of humanoid robotics, with Chinese robotics companies like Booster Robotics and LimX Dynamics demonstrating cost-effective solutions that challenge Japan's legacy in the field. Professor Hiroshi Ishiguro's robot clone offered a philosophical take: robots will coexist with people as mirrors of humanity, even as experts warn Japan risks falling behind in commercializing innovations.
Kenjiro Tsuda, the Japanese voice actor behind Yu-Gi-Oh's Seto Kaiba and Jujutsu Kaisen's Kento Nanami, filed a lawsuit against TikTok alleging 188 videos feature AI-generated recreations of his distinctive voice. The case, filed in November 2025 with the Tokyo District Court, marks Japan's first legal action against unauthorized use of a celebrity's AI-cloned voice and could set precedent for the voice acting industry.
Kawasaki Heavy Industries partnered with Nvidia, Microsoft, and others to advance physical AI for robots through a new San Jose development center. Shares jumped 12% as the collaboration targets healthcare applications and brings foundation model capabilities to CORLEO, Kawasaki's four-legged rideable robot concept aimed at off-road mobility.
Japanese director Koji Fukada voiced concerns about artificial intelligence in art at the Cannes Film Festival, arguing that AI tools allow creators to bypass the essential process of creation. His new film Nagi Notes, competing for the Palme d'Or, explores the human process of sculpting as a counter-narrative to AI-driven shortcuts in creative work.
Japan's three largest banks—MUFG, Mizuho, and Sumitomo Mitsui—will gain access to Anthropic's vulnerability-hunting AI model Mythos by the end of May. This marks the first Japanese entry to the restricted rollout, which has uncovered thousands of zero-day vulnerabilities across major operating systems and browsers. Japan is establishing a public-private working group to address the cybersecurity risks posed by this powerful AI model.
Japan's Prime Minister Sanae Takaichi has ordered a cabinet-level cybersecurity review to defend against Anthropic's Mythos AI model. The move comes as officials warn that the bug-hunting AI could enable faster, more sophisticated cyberattacks on critical infrastructure. Japan is now coordinating with Western allies to prevent weaponization of advanced AI models.
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