Yomiuri: 15 More Firms May Invest in SoftBank-led Japanese AI Company

Dow Jones
06/01

By Yasuaki Kobayashi / Yomiuri Shimbun Staff Writer

About 15 more companies have expressed their intention to invest in a new Japanese artificial intelligence development company established by SoftBank Corp. and others, according to sources.

Through their participation, these firms, which include Toshiba Corp., Hitachi Ltd. and KDDI Research Inc., aim to bring the new company's AI development operations in line with their own needs. Preferred Networks Inc. and Sakana AI, two companies that are developing AI systems, are also expected to invest in the project and take the lead in its development.

The United States and China currently lead the world in AI development, but Japanese companies that develop AI systems and ones that use AI systems aim to regain lost ground by working together to develop cutting-edge AI technologies. The new company plans to develop "physical AI" systems that will ultimately be installed in robots. Japanese companies from various fields, primarily ones in the manufacturing sector, are coming together with the goal of utilizing this technology for production automation and other purposes.

Other companies that have expressed an intention to invest in the new company -- called Nihon AI Kiban Moderu Kaihatsu (Japan AI platform model development) -- include major industrial robot manufacturers Fanuc Corp. and Yaskawa Electric Corp., Daikin Industries Ltd., major power generator Jera Co., Asahi Kasei Corp. and Nippon Life Insurance Co. In addition, 10 more companies, including Fujitsu Ltd., are believed to be considering investment. The number of companies taking stakes in the new firm is expected to grow further in the future.

There are concerns that if Japanese companies use AI systems from foreign countries, providing them with locally collected data, it could cause an outflow of Japanese know-how to these countries. The new company aims to prevent this from happening by establishing a system in which high-quality domestic AI systems are developed by Japanese companies for Japanese use. The plan is to make the AI developed by the new company available to Japanese firms, even noninvestors.

The new company was established earlier this year, with SoftBank, NEC Corp., Sony Group Corp. and Honda Motor Co. serving as core investors, each taking a stake of over 10%.

A national research and development corporation under the jurisdiction of the Economy, Trade and Industry Ministry has been soliciting applications for support from companies developing domestic AI systems since late March, and the new company has applied. The ministry plans to provide a total of 1 trillion yen to selected companies over a five-year period ending in fiscal 2030.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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May 31, 2026 19:28 ET (23:28 GMT)

Copyright (c) 2026 The Yomiuri Shimbun

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