SoftBank backs a domestic AI company

SoftBank is backing a new Japanese artificial intelligence company with investment from domestic groups including NEC, Honda and Sony. (biz.chosun.com) The venture is being set up as “Nihon AI Foundation Model Development,” according to a report published April 12, and it aims to build large language models with parameters in the trillions. SoftBank and NEC are expected to lead model development, while Sony and Honda plan to apply the systems in cars, robots, games and semiconductors. (biz.chosun.com) The same report said each of the four companies secured stakes of more than 10%, and that about 100 artificial intelligence developers are expected to participate, including engineers linked to Preferred Networks. Several other Japanese companies, including Nippon Steel and the three megabanks, are also expected to join as minority shareholders. (biz.chosun.com) A foundation model is the base artificial intelligence system trained on huge amounts of data before companies adapt it for specific jobs such as chatbots, coding tools or robot control. The Japanese venture is targeting both enterprise software and “physical AI,” meaning models that can help machines act in the real world. (biz.chosun.com) The announcement lands as SoftBank has been building out the hardware side of that push. On January 21, SoftBank said it had developed “Infrinia AI Cloud OS,” software for artificial intelligence data centers that manages graphics processing units, Kubernetes and inference workloads at scale. (softbank.jp) SoftBank is also constructing the Hokkaido Tomakomai AI Data Center, a site it said is scheduled to begin operations in fiscal 2026 with power capacity expected to exceed 300 megawatts. The company has described that project as part of a plan to spread data processing beyond the Tokyo and Osaka areas. (softbank.jp) Japan’s government is putting money behind the same goal. The April 12 report said the new company plans to apply for a Ministry of Economy, Trade and Industry support program that will provide a total of 1 trillion yen over five years starting in fiscal 2026 for domestic artificial intelligence developers. (biz.chosun.com) SoftBank has been using joint ventures to pool infrastructure with other Japanese companies in adjacent businesses too. On January 30, it said it would establish a joint venture with Sony Network Communications to combine parts of their fiber network operations. (softbank.jp) Taken together, the new artificial intelligence venture and SoftBank’s recent data center and network moves show a domestic buildout strategy: train the models in Japan, run them on Japanese infrastructure, and sell them into Japanese industry. (softbank.jp, softbank.jp, biz.chosun.com)