Japan to allocate over $6 billion for its own AI development

The Japanese government will provide approximately 1 trillion yen ($6.34 billion) in support over five years to help a planned new company develop its own artificial intelligence, a source close to the matter told Kyodo, writes UNN.

Details

The company will be founded by about 10 firms, including SoftBank Group Corp., with the goal of developing the country's largest AI foundational model through public-private cooperation, the source said.

The five-year support scheme is expected to begin in fiscal year 2026, which starts next April, the source said.

Japan's move to develop its own AI comes amid its hope to compete with China and the United States, leading players in this technology, which can directly impact national security.

According to the source, about 100 engineers from SoftBank and AI startup Preferred Networks Inc. will join the new company.

Facing global competition for semiconductor procurement, there is hope that the new company, with government assistance, will be able to secure the necessary supplies, the source said.

As Japan lags in AI adoption, the government aims to develop a basic plan, which is expected to be approved by the country's cabinet soon. In the plan, the government will emphasize the need to develop domestic AI and support data centers to strengthen national power and reduce the digital divide.

The development of "physical AI," which combines technology with robotics, is also included in the draft as a key strategy for Japan, which lags in this area.

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