SoftBank backs domestic AI firm
SoftBank is launching a new domestic AI company with investments from NEC, Honda and other partners as Japan steps up efforts to build local AI capability and partnerships. The move is being presented as part of a national industrial push rather than a pure venture bet. (x.com)
SoftBank has set up a new company in Japan to build a domestic artificial intelligence model with NEC, Sony Group and Honda as core backers. (yomiuri.co.jp) The new company is named Japan AI Foundation Model Development, according to Yomiuri Shimbun, and the four core companies are each investing stakes in the low double digits. Jiji Press reported the four companies each took stakes of more than 10 percent. (yomiuri.co.jp) (jen.jiji.com) SoftBank and NEC are expected to lead work on the base model itself, while Honda and Sony plan to use the resulting system in cars, robots, games and semiconductors. The venture is also expected to draw engineers from SoftBank and Tokyo artificial intelligence developer Preferred Networks. (yomiuri.co.jp) (jen.jiji.com) A base model is the core software trained on huge amounts of data before companies adapt it for their own tasks, much like a general-purpose engine before it is tuned for a specific machine. Yomiuri reported the new company aims first for a model with 1 trillion parameters, a common yardstick for model scale, and later wants to build “physical artificial intelligence” that can control robots. (yomiuri.co.jp) The project arrives as Tokyo is shifting artificial intelligence from a startup theme to an industrial policy priority. Jiji Press reported the company plans to apply for a support program run by the New Energy and Industrial Technology Development Organization, which began accepting proposals in late March. (jen.jiji.com) That program is slated to provide a total of 1 trillion yen in assistance over five years starting in fiscal 2026, according to Jiji Press. Reporting in December by Kyodo, published by the South China Morning Post, said the government was preparing roughly the same 1 trillion yen package for a public-private effort to build a home-grown model. (jen.jiji.com) (scmp.com) The shareholder list shows how broadly Japan is trying to spread the project across industry. Yomiuri said Nippon Steel, Mitsubishi United Financial Group, Sumitomo Mitsui Banking Corporation and Mizuho Financial Group are investing as minority shareholders, with other companies still in talks. (yomiuri.co.jp) Japan has been trying to close a gap with the United States and China in generative artificial intelligence while leaning on domestic strengths in manufacturing and robotics. Yomiuri said policymakers see an opening in “physical artificial intelligence,” where software is trained to act in the real world through machines rather than only generate text or images. (yomiuri.co.jp) SoftBank is also pursuing large overseas artificial intelligence ties at the same time. On April 1, 2026, SoftBank Group disclosed an additional investment in OpenAI, underscoring that its Japan vehicle is being built alongside, not instead of, global partnerships. (group.softbank)
