Japan builds local AI
SoftBank and several large Japanese corporates have set up a new company to develop large‑scale AI for domestic corporate use, aiming to reduce reliance on foreign AI platforms. The formation was reported by Nikkei and confirmed in multiple outlets as a coordinated corporate effort to localize AI capability. (asia.nikkei.com, japantoday.com)
SoftBank, NEC, Sony Group and Honda Motor have set up a new company to build a Japanese artificial intelligence model for domestic business use. (japannews.yomiuri.co.jp) The company is called Nihon AI Kiban Moderu Kaihatsu, or Japan AI platform model development, and each of the four core companies holds a stake of 10 percent or slightly more, according to Yomiuri Shimbun and Jiji Press. (japannews.yomiuri.co.jp, jen.jiji.com) Nippon Steel, MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank and Kobe Steel are also investing as minority shareholders, while Preferred Networks is expected to help with the technical work. The new company plans to hire about 100 artificial intelligence developers and engineers. (asahi.com, japannews.yomiuri.co.jp) A foundation model is the base system underneath tools that write text, search documents or generate images. This venture plans to build a model with 1 trillion parameters, a rough measure of size and complexity that Yomiuri described as a benchmark already reached by leading global systems. (japannews.yomiuri.co.jp) SoftBank and NEC are expected to build the model itself, while Honda and Sony plan to use it in products and services tied to cars, robots, video games and semiconductors. The company also plans to offer the model to other Japanese businesses, including non-investors that want to adapt it for their own use. (japannews.yomiuri.co.jp, asahi.com) The longer-term target is “physical artificial intelligence,” software that does not just generate words or images on a screen but helps control machines in the real world. Asahi Shimbun said the group is aiming at autonomous robots, an area where Japanese manufacturers have longstanding strengths. (asahi.com) The project is tied to a broader state-backed push that has been taking shape since late 2025. In December, Yomiuri Shimbun reported that Japan’s Economy, Trade and Industry Ministry was preparing a public-private domestic artificial intelligence effort totaling about 3 trillion yen, including about 1 trillion yen in government support over five years starting in fiscal 2026. (japannews.yomiuri.co.jp) The new company plans to apply to a support program run by the New Energy and Industrial Technology Development Organization, or NEDO, which began accepting proposals in late March. Jiji Press and Yomiuri said the program is set to provide a total of 1 trillion yen in assistance over five years from fiscal 2026. (jen.jiji.com, japannews.yomiuri.co.jp) Japanese newspapers framed the effort as a response to two pressures at once: the lead held by United States and Chinese artificial intelligence companies, and concern that depending on foreign core systems could expose sensitive corporate information. Asahi said those economic security concerns are pushing Japanese companies to seek a domestic option they can run in a more controlled environment. (asahi.com) If the plan works, Japan will not just have another chatbot supplier. It will have a locally controlled base model that its biggest manufacturers, banks and industrial groups can tune for factories, finance and robotics. (japannews.yomiuri.co.jp, asahi.com)
