A public-private joint venture established in Japan with the goal of developing a national-flagship artificial intelligence (AI) model has drawn investment interest from about 30 companies. Following major corporations leading the project, including SoftBank, Sony, and Honda, key firms across the manufacturing ecosystem are joining one after another.
According to the Nikkei on the 28th, around 30 companies are considering investing in Japan AI Foundation Model Development, established under SoftBank's leadership. The prospective investors include chemicals and materials firms Asahi Kasei and Yaskawa Electric, Fujitsu, heavy industry companies, and major transportation firms. About 10 companies are expected to finalize their investments in June, with each putting in a small amount in the range of tens of millions of yen.
The Nikkei reported that the project "aims to develop an AI foundation that covers the entire supply chain by additionally bringing in companies that support manufacturing, including materials, machine tools, and logistics," adding that "this will expand the scope of work that AI can handle."
The reason a wide range of companies beyond semiconductor and software firms are joining the venture is that the Japanese government is focusing on "Physical AI," which combines robotics and AI. The Nikkei interpreted the strategy as follows: "While the U.S. and China are ahead in AI models, Japanese companies have strengths in data accumulated on manufacturing floors. The strategy is to absorb production and technology data from diverse industries such as materials and machinery, and to counter rivals by strengthening competitiveness in Physical AI that autonomously controls and drives machines and robots."
Currently, Japan AI Foundation Model Development has SoftBank, NEC, Honda, and Sony Group as its four core members, each holding a stake of more than 10 percent. Three megabanks including MUFG Bank, along with Nippon Steel and Kobe Steel, are participating as small-stake investors. In April, Japan AI Foundation Model Development applied for a domestic AI development support program offered by the New Energy and Industrial Technology Development Organization (NEDO). If selected, the venture will be converted into a public-private project around this summer. The company will continue to recruit investors and partners, with the possibility that close to 100 companies and organizations will ultimately participate.
Japan AI Foundation Model aims to develop an ultra-large model with 1 trillion parameters by 2027. In 2029, the model will be upgraded to simultaneously process different types of information such as images and audio, and in the 2030s, it will be expanded to integrally handle real-world information such as weight, temperature, location, and distance. The developed model will be opened to investors and others to promote the development of AI models tailored to individual companies.
