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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

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

SoftBank, NEC, Sony Group, and Honda have formed a joint venture to develop a trillion-parameter AI model focused on Physical AI—systems that control robots, autonomous vehicles, and factory automation. With ¥1 trillion (~$6.3 billion) in government backing over five years, Japan aims to challenge U.S. and China AI dominance while keeping Japanese data domestic.

Business4 sources

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

Business4 sources

Microsoft unveils $10 billion Japan investment to build AI infrastructure and train engineers

Microsoft announced a four-year, $10 billion commitment to Japan, focusing on AI infrastructure development and cybersecurity partnerships. The tech giant will collaborate with SoftBank and Sakura Internet to expand computing capacity while training 1 million engineers by 2030, addressing Japan's projected shortfall of over 3 million AI and robotics workers by 2040.

Technology12 sources

Microsoft unveils $10 billion Japan investment to build AI infrastructure and train engineers

Technology12 sources

Fujitsu and Rapidus partner to build 1.4nm AI chip entirely in Japan with government backing

Fujitsu plans to develop an advanced 1.4nm AI chip manufactured entirely in Japan by Rapidus, marking a significant push toward sovereign AI capabilities. Japan's NEDO will fund roughly two-thirds of the ¥58 billion ($363 million) development cost. The NPU will integrate with Fujitsu's Arm-based Monaka CPUs for deployment in server systems and the Fugaku NEXT supercomputer.

Technology2 sources

Fujitsu and Rapidus partner to build 1.4nm AI chip entirely in Japan with government backing

Technology2 sources

Uber teams with Wayve and Nissan to launch robotaxi service in Tokyo by late 2026

Uber has announced its first autonomous vehicle partnership in Japan, joining forces with British AI startup Wayve and Nissan to pilot a robotaxi service in Tokyo by late 2026. The deployment will use Nissan LEAF electric vehicles equipped with Wayve's AI Driver technology, connected to Uber's platform with trained safety operators initially behind the wheel. This marks a significant expansion of Uber's global robotaxi ambitions into one of the world's most challenging urban driving environments.

Technology6 sources

Uber teams with Wayve and Nissan to launch robotaxi service in Tokyo by late 2026

Technology6 sources

Nuro tests autonomous vehicle tech on Tokyo streets in first international deployment

Silicon Valley startup Nuro has begun testing self-driving vehicles on Tokyo's public roads, marking its first overseas expansion. The company's AI-powered system navigates Japanese streets without prior training on local data, using what it calls zero-shot autonomous driving. Backed by Nvidia, Uber, and Softbank, Nuro aims to license its technology globally as it competes with established players like Waymo.

Technology4 sources

Nuro tests autonomous vehicle tech on Tokyo streets in first international deployment

Technology4 sources

Japan unveils Buddharoid, an AI monk trained in Buddhist scriptures to offer spiritual guidance

Kyoto University researchers have introduced Buddharoid, an AI-powered robot monk trained on vast Buddhist scriptures. The humanoid robot can hold dynamic conversations, perform human-like gestures, and adopt traditional prayer postures in temple environments. As Japan faces an aging population and shrinking workforce, this innovation addresses the shortage of Buddhist monks while showcasing the intersection of AI and spiritual practice.

Entertainment2 sources

Japan unveils Buddharoid, an AI monk trained in Buddhist scriptures to offer spiritual guidance

Entertainment2 sources

Japanese toilet maker Toto emerges as unexpected AI semiconductor supplier with 40% stock surge

Toto, the Japanese company known for Washlet bidets and heated toilet seats, is being repositioned as a critical AI infrastructure player. Activist investor Palliser Capital claims the company's advanced ceramics business—producing precision components for semiconductor manufacturing—makes it the most undervalued and overlooked AI memory beneficiary. Shares have jumped nearly 40% in early 2026 as investors recognize the connection between Toto's ceramic parts and the booming demand for memory chips in AI data centers.

Business3 sources

Japanese toilet maker Toto emerges as unexpected AI semiconductor supplier with 40% stock surge

Business3 sources

EVA AI hosts world's first AI dating cafe where humans romance virtual companions

EVA AI transformed a Manhattan wine bar into an AI pop-up cafe where users could video chat with virtual companions like John Yoon and Claire Lang. The Valentine's Day event tested whether AI relationships could transition from private screens to public spaces, revealing both the appeal and awkwardness of human-AI connection.

Entertainment14 sources

EVA AI hosts world's first AI dating cafe where humans romance virtual companions

Entertainment14 sources

TSMC to produce cutting-edge 3nm AI chips in Japan as demand from tech giants soars

Taiwan's TSMC announced plans to manufacture advanced 3-nanometer semiconductors at its second Kumamoto factory in Japan, a significant upgrade from initial plans. The move addresses bottlenecked production capacity driven by surging AI demand from customers like Nvidia, while also reflecting geopolitical considerations as the chipmaker diversifies beyond Taiwan.

Business3 sources

TSMC to produce cutting-edge 3nm AI chips in Japan as demand from tech giants soars

Business3 sources

Kioxia names new CEO to capture AI storage growth while rivals chase high-bandwidth memory

Japanese flash memory maker Kioxia is promoting Hiroo Oota to CEO as it positions itself to capitalize on surging demand for NAND storage in AI data centers. While competitors Samsung, SK Hynix, and Micron focus on high-bandwidth memory, Kioxia sees opportunity in high-density storage solutions. The company's shares have jumped more than 13 times since its late 2024 IPO, reflecting investor confidence in its strategic positioning.

Business2 sources

Kioxia names new CEO to capture AI storage growth while rivals chase high-bandwidth memory

Business2 sources

Google Invests in Sakana AI to Boost Gemini's Presence in Japan's Enterprise Market

Google has invested in Japanese AI startup Sakana AI to strengthen Gemini chatbot's position in Japan, where it trails OpenAI's ChatGPT. The partnership allows Sakana AI to leverage Google's language models while helping Gemini penetrate Japan's corporate landscape. Founded in 2023 and valued at $2.6 billion, Sakana AI has already secured contracts with major Japanese banks and is expanding into government and defense sectors.

Business2 sources

Google Invests in Sakana AI to Boost Gemini's Presence in Japan's Enterprise Market

Business2 sources

Japan Probing Grok AI Over Sexualized Images as Elon Musk's Chatbot Faces Global Backlash

Japan has launched an investigation into Elon Musk's Grok AI service over concerns about non-consensual sexualized images. Economic Security Minister Kimi Onoda warned that all options, including legal measures, are on the table if X Corp fails to improve safeguards. The probe adds Japan to a growing list of countries taking action against the chatbot.

Policy4 sources

Japan Probing Grok AI Over Sexualized Images as Elon Musk's Chatbot Faces Global Backlash

Policy4 sources

Cygames Issues Apology After Fierce Fan Backlash Over AI Studio Launch

Japanese game developer Cygames apologized after announcing Cygames AI Studio, an AI-focused subsidiary, sparking widespread criticism from fans. The studio behind Umamusume and Granblue Fantasy clarified that generative AI isn't used in its products and promised not to implement it without prior notice, though the commitment has left some fans skeptical about future AI adoption.

Technology4 sources

Cygames Issues Apology After Fierce Fan Backlash Over AI Studio Launch

Technology4 sources

Glass cloth shortage emerges as AI boom drains supply, leaving Apple and Nvidia scrambling

A critical glass cloth shortage is threatening AI chip production as Apple, Nvidia, Google, and Amazon compete for limited supplies from Japanese manufacturer Nitto Boseki. The supply crunch, driven by surging AI data center demand, won't ease until 2027. Tech giants are dispatching executives to Japan while racing to qualify alternative suppliers.

Business3 sources

Glass cloth shortage emerges as AI boom drains supply, leaving Apple and Nvidia scrambling

Business3 sources

Japan quadruples AI and chip spending to $7.9 billion as tech race with U.S. and China intensifies

Japan's Ministry of Economy, Trade and Industry is set to nearly quadruple its budgeted support for cutting-edge semiconductors and AI development to ¥1.23 trillion ($7.9 billion) for fiscal year 2025. The massive increase reflects Japan's push to strengthen its position in frontier technology as the U.S. and China continue their dominance, while also securing better supply chain access for critical technologies.

Policy2 sources

Japan quadruples AI and chip spending to $7.9 billion as tech race with U.S. and China intensifies

Policy2 sources

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