Japanese tech giants launch joint venture targeting physical AI for robots and machines

Japanese technology giants SoftBank Group Corp., Sony Corp. and NEC Corp. are teaming up with Honda Motor Co., Ltd. on a new artificial intelligence joint venture that has a single goal: to build a trillion-parameter model for autonomous machines.

The companies are reportedly making a big bet on what has become known as “physical AI,” or AI systems that operate in the real world, controlling robots, driving cars and running factories at scale.

Nikkei Asia reported Sunday that SoftBank and NEC will be tasked with developing the AI, while Honda will be the first to deploy the new model in its autonomous vehicles. Sony’s involvement reportedly pertains to robotics and gaming hardware, and there are other partners involved too. One is a company called Preferred Networks Inc., a Tokyo-based AI startup focused on deep learning and “internet of things” applications.

The new joint venture, whose name translates to “Japan AI Foundation Model Development,” plans to hire about 100 AI engineers, with a senior SoftBank executive serving as its president.

A number of Japan’s biggest industrial firms are also involved in the venture. Kobe Steel, Nippon Steel, Mizuho Bank, Sumitomo Mitsui Banking and MUFG Bank are all listed as investors. In addition, the Japanese government is also putting money into the project via its New Energy and Industrial Technology Development agency, which has earmarked around one trillion yen (around $6.28 billion) over the next five years.

The project also has a “sovereign AI” angle to it. For years, Japanese companies have been reliant on U.S. cloud infrastructure providers and paying big money for their services, creating a “digital deficit,” where capital has constantly flowed out of the country. But the new company intends to train its AI on Japanese data, and keep that data in Japan, out of the hands of companies like Google LLC and OpenAI Group PBC.

That’s in stark contrast to what SoftBank has been doing in the past. The company has been funneling billions of dollars into U.S. firms, notably leading OpenAI’s $40 billion funding round last year. But now it sits on the other side of the table, anchoring a domestic venture that aims to be independent of the U.S. AI ecosystem.

Holger Mueller of Constellation Research told SiliconANGLE that physical AI is fast becoming the new battleground for technology companies, because it paves the way for AI models to make their impact felt in the real world and replace human labor with machine automation.

“Japan has dozens of world-class industries that can benefit from automation, including robotics, the automotive sector and heavy equipment manufacturing,” the analyst said. “SoftBank is always ready to invest if it sees merit to an idea involving AI, and it’s probably sensible from a strategic perspective to balance its U.S. investments in another friendly nation, and where better than its home country? Japan has a strong motivation to reduce its ‘digital deficit’ with the U.S., and with so many serious players involved, it will be interesting to see where this joint venture leads it.”

The companies didn’t say when the joint venture will begin operations, but they’re reportedly targeting the launch of “physical AI applications” by 2030.

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