Japan giants form physical‑AI JV

SoftBank, NEC, Sony Group and Honda Motor have set up a new company in Japan to build giant artificial intelligence models for robots, vehicles and factory machines, not chatbots. (siliconangle.com) The company, whose name translates as Japan AI Foundation Model Development, was established on April 12 and is aiming for a one-trillion-parameter model, according to reports published April 13 and April 14. SoftBank and NEC are expected to lead model development, while Honda and Sony plan to apply the systems in areas including automobiles, robots, games and semiconductors. (japannews.yomiuri.co.jp) The venture plans to hire about 100 artificial intelligence engineers, and a senior SoftBank executive has been appointed president. Nikkei Asia reported that eight companies had invested as of April 13, and other investors named in coverage include MUFG Bank, Sumitomo Mitsui Banking, Mizuho Bank, Nippon Steel and Kobe Steel. (siliconangle.com) (asia.nikkei.com) “Physical artificial intelligence” means software trained to sense and act in the real world, like a model that helps a robot arm sort parts or helps a vehicle react to traffic. That is different from a text chatbot, which predicts words on a screen instead of controlling motors, sensors and machines. (techwireasia.com) (blogs.nvidia.com) Japan is pushing this approach as manufacturers face labor shortages and want more domestic control over core technology. TechCrunch reported on April 5 that investors and operators in Japan are treating physical artificial intelligence as a way to keep factories, warehouses and service operations running with fewer workers. (techcrunch.com) The government has also been building a policy framework around homegrown artificial intelligence. Japan’s Cabinet Office said the country’s artificial intelligence law was fully implemented on September 1, 2025, after partial enactment on June 4, 2025, and the government began work on a basic national plan that month. (cao.go.jp) The new company is expected to seek support from Japan’s public artificial intelligence programs. Yomiuri and other reports said the venture plans to participate in a government-backed program that could provide up to ¥1 trillion over five years for domestic model development. (japannews.yomiuri.co.jp) (siliconangle.com) Preferred Networks, a Tokyo artificial intelligence company that says it works across chips, infrastructure, foundation models and applications, is also expected to collaborate on development. Yomiuri reported the resulting models will be offered to Japanese companies, including businesses that do not invest in the venture itself. (preferred.jp) (japannews.yomiuri.co.jp) The immediate test is whether Japan’s consortium can turn a very large model into reliable industrial products faster than rivals in the United States and China. For now, the clearest signal is the target: build artificial intelligence that moves machines on factory floors and roads, not just words on screens. (asia.nikkei.com) (siliconangle.com)