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Key Facts

Key PlayersSoftBank, NEC, Fujitsu, Preferred Networks

Top InstitutionsRIKEN, University of Tokyo, AIST

AI Policy StanceInnovation-first, no penalties

Notable LegislationAI Promotion Act (Sep 2025)

Top News

NTT Data nears $6.3bn deal to build Anthropic's first Japan data centre in Osaka

NTT Data Group is in final talks with Anthropic to construct a massive data centre in Osaka, marking the US AI company's first dedicated facility in Japan. The project could cost up to 1 trillion yen ($6.3 billion) for construction alone and draw 500 megawatts of power, making it one of Japan's largest data centres with partial operations targeted for 2028.

Business2 sources

NTT Data nears $6.3bn deal to build Anthropic's first Japan data centre in Osaka

Business2 sources

AI Cyberattacks Expose 100,000 Records at 16 South Korea Financial Firms as AI Lowers Bar for Hacking

South Korea and Japan face unprecedented waves of AI-driven cyberattacks targeting financial firms and major corporations. Sixteen South Korean financial institutions have been breached, exposing 100,000 personal records, while Japan recorded more cybersecurity incidents in nine months than all of last year.

Technology9 sources

AI Cyberattacks Expose 100,000 Records at 16 South Korea Financial Firms as AI Lowers Bar for Hacking

Technology9 sources

Bank of Japan Warns AI Boom Could Trigger Market Correction If Profits Fail to Materialize

Bank of Japan Deputy Governor Shinichi Uchida cautioned that while the AI boom may have eased financial conditions by driving demand and lifting asset prices, markets face correction risks if AI-related profits don't meet expectations. The central bank is closely monitoring AI's impact on Japan's natural rate of interest and inflation.

Policy4 sources

Bank of Japan Warns AI Boom Could Trigger Market Correction If Profits Fail to Materialize

Policy4 sources

Japan Launches $140B AI Infrastructure Push with Dell, JERA to Close Gap with US and China

JERA, Dell Technologies and RHAELM unveiled a $140 billion plan to build 3-4 gigawatts of AI data centers across Japan within five years. The partnership aims to position Japan as the world's largest AI infrastructure hub outside the US and China, starting with a $15 billion, 400-megawatt hyperscale data center near Tokyo backed by Apollo Global Management.

Technology6 sources

Japan Launches $140B AI Infrastructure Push with Dell, JERA to Close Gap with US and China

Technology6 sources

Tokyo Court Rules AI Voice Cloning Violates Publicity Rights in Landmark Case

A Tokyo court ruled that human voices are protected under publicity rights after anime voice actor Kenjiro Tsuda sued TikTok over AI-generated videos that cloned his distinctive baritone. The landmark AI case marks Japan's first legal defense of vocal identity against unauthorized AI replication.

Policy8 sources

Tokyo Court Rules AI Voice Cloning Violates Publicity Rights in Landmark Case

Policy8 sources

Japanese Game Developers Hit 86% AI Adoption, Up from 51% in Just One Year

Japan's gaming industry shows explosive generative AI adoption at 85.8% in 2026, up from 51% in 2025, according to the CESA Videogame Industry Report. Developers at Capcom, Sega, Sony, and other major studios cite efficiency gains and cost reduction as primary benefits, while maintaining strict human oversight protocols.

Technology3 sources

Japanese Game Developers Hit 86% AI Adoption, Up from 51% in Just One Year

Technology3 sources

Japan Signals AI and Chips Will Dominate Next Phase of $550B US Investment Pact

Japan's trade minister Ryosei Akazawa confirmed that artificial intelligence and semiconductor projects will carry "very significant weight" in the upcoming third tranche of the $550B US-Japan investment pact. With $109B already committed to energy and minerals, the strategic investment is now pivoting toward high-tech industrial policy as both nations deepen technology-driven economic collaboration.

Business2 sources

Japan Signals AI and Chips Will Dominate Next Phase of $550B US Investment Pact

Business2 sources

AI Hardware Demand Drives Factory Expansion Across Asia Despite Rising Geopolitical Risks

Asia's manufacturing sector expanded in August as AI hardware demand sustained factory activity across China, Japan, South Korea, Taiwan, Singapore, and the Philippines. Strong semiconductor and technology exports drove growth, though the Middle East conflict and rising costs threaten the region's outlook.

Business3 sources

AI Hardware Demand Drives Factory Expansion Across Asia Despite Rising Geopolitical Risks

Business3 sources

Japan requests $55.6B defense budget for AI command systems, underwater drones and hypersonic missiles

Japan's Defense Ministry unveiled an 8.9 trillion yen ($55.6 billion) budget request emphasizing AI-powered warfare and autonomous systems. The plan includes an AI orchestrator for integrated command and control, underwater attack drones launching from April 2027, and submarine-launched hypersonic missiles as the nation adapts its defense strategy to counter China's regional influence.

Policy5 sources

Japan requests $55.6B defense budget for AI command systems, underwater drones and hypersonic missiles

Policy5 sources

Kioxia and Sandisk Announce $31.4 Billion Investment to Scale AI Chip Production in Japan

Kioxia and Sandisk are investing over $31.4 billion through 2032 to expand flash memory chip production in Japan. The partnership will build a new facility in Kitakami to produce high-density 3D flash memory chips critical for AI workloads and data centers, addressing global semiconductor supply constraints.

Business3 sources

Kioxia and Sandisk Announce $31.4 Billion Investment to Scale AI Chip Production in Japan

Business3 sources

SuperX AI Secures $38.8M Nvidia B300 Order in Japan, Expands to Australia with 128-Unit Deal

Singapore-based SuperX AI Technology Limited announced two major deals for Nvidia B300 AI server clusters. The company secured a $38.8 million order from WOODMAN Inc. for an AI infrastructure project in Yokohama, Japan, with delivery scheduled for mid-November 2026. Additionally, SuperX signed an agreement with Australian provider Ezisight for 128 Nvidia B300 units, marking its entry into the Australian market as part of its Asia-Pacific expansion strategy.

Business3 sources

SuperX AI Secures $38.8M Nvidia B300 Order in Japan, Expands to Australia with 128-Unit Deal

Business3 sources

Japan Government Pushes AI Firms to Disclose Training Data Under New IP Protection Framework

Japan's government adopted guiding principles requiring generative AI operators to disclose training data outlines and methods. The non-binding Principles Code aims to boost AI transparency while balancing innovation with protection of intellectual property rights amid growing concerns over unauthorized use of copyrighted materials.

Policy2 sources

Japan Government Pushes AI Firms to Disclose Training Data Under New IP Protection Framework

Policy2 sources

Helsing Partners with Rakuten to Test AI Strike Drones for Japan's Military Build-Up

Munich-based Helsing has enlisted Rakuten Group to navigate Japan's arms market, with the HX-2 strike drone now undergoing field trials with Japan's Ground Self-Defence Forces through September. The partnership marks a shift as Japan eases procurement rules and ramps up defence spending to historic levels, drawing foreign weapons-makers into a market previously closed to them.

Business3 sources

Helsing Partners with Rakuten to Test AI Strike Drones for Japan's Military Build-Up

Business3 sources

Uber Partners with Hinomaru Kotsu to Launch Tokyo Robotaxi Service in Late 2026

Uber Japan has signed an operational partnership with Hinomaru Kotsu to manage fleet operations for a Tokyo robotaxi pilot scheduled for late 2026. The initiative will deploy Nissan LEAF vehicles equipped with Wayve's AI Driver technology through Uber's ride-hailing platform, with experienced safety operators initially behind the wheel before transitioning to fully driverless operations pending regulatory approval.

Business3 sources

Uber Partners with Hinomaru Kotsu to Launch Tokyo Robotaxi Service in Late 2026

Business3 sources

Over 80% of Japanese Firms Lag in AI Adoption Despite Productivity Pressures

A Reuters poll conducted by Nikkei Research shows more than 80% of Japanese companies use AI in limited capacities or not at all, with only 16% deploying it company-wide. This lag in AI adoption threatens productivity growth despite acute labor shortages and government economic revival efforts.

Business3 sources

Over 80% of Japanese Firms Lag in AI Adoption Despite Productivity Pressures

Business3 sources

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