- SoftBank, NEC, Honda, and Sony jointly established Japan AI Foundation Model Development, targeting a trillion-parameter AI model designed to control robots, vehicles, and factory systems.
- Japan’s NEDO has earmarked roughly ¥1 trillion (AU$9.14 billion) in AI support over five years, and the new venture is considered a near-certain recipient of the funding.
- The consortium keeps all training data on Japanese soil, a direct response to concerns about sensitive industrial data flowing through foreign cloud platforms.
SoftBank, NEC, Honda and Sony Group have formed a joint venture to develop a trillion-parameter artificial intelligence (AI) model designed for real-world industrial use, a new entity called Japan AI Foundation Model Development.
It will focus on “physical AI” systems capable of controlling robot arms, autonomous vehicles and factory operations, rather than text-based applications.
According to the press release, SoftBank and NEC will lead development, Honda will deploy the model in autonomous driving systems, and Sony will contribute robotics and hardware expertise.
Likewise, ownership is spread across major industrial and financial firms, including Nippon Steel, Kobe Steel, MUFG Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank, alongside the four founding companies, each holding stakes above 10%.
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A Lot of Government Backing
The project is expected to receive support from Japan’s New Energy and Industrial Technology Development Organisation, which has allocated ¥1 trillion, or about US$6.3 billion (AU$9.14 billion), for AI development over five years starting in fiscal 2026.
All model training and data processing will remain within Japan, avoiding reliance on foreign cloud providers.
Japan already holds a dominant position in industrial robotics, accounting for around 70% of global supply and hosting five of the world’s ten largest robot manufacturers. The Ministry of Economy, Trade and Industry aims to secure 30% of the global physical AI market by 2040.
The domestic market for physical AI, valued at US$307 million (AU$445 million) in 2025, is projected to reach US$6.76 billion (AU$9.8 billion) by 2035. The consortium is targeting initial deployment by 2030.
SoftBank’s involvement follows its participation in OpenAI’s US$40 billion (AU$58 billion) funding round in 2025, reflecting parallel investments in both domestic and US-led AI ecosystems.
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