SoftBank Group, NEC Corporation, Honda Motor And Sony Group Form Joint Venture To Advance Japan’s Domestic AI Capabilities

In Brief

SoftBank Group, NEC Corporation, Honda Motor, and Sony Group launch a joint AI firm to build domestic large-scale models, backed by industry investors and expected government funding to boost Japan’s competitiveness.

SoftBank Group, NEC Corporation, Honda Motor, and Sony Group have jointly established a new company dedicated to the development of large-scale artificial intelligence systems intended for use by domestic enterprises, according to a report reviewed on Sunday.

The initiative is understood to be part of a broader effort to close the technological gap with competitors in the United States and China in the field of advanced AI models. The participating firms indicated that they anticipate receiving financial backing from the Japanese government to support the project’s development and expansion.

According to the report, the consortium plans to make the resulting AI model available to other companies within Japan, with longer-term ambitions that include the creation of additional systems tailored to specific industrial applications. Among these is a model designed to support the operation of factory robotics, reflecting a focus on manufacturing and automation.

Investment Structure, Engineering Workforce, And Government Funding Strategy

The newly formed company is expected to employ approximately 100 artificial intelligence engineers. Leadership of the organization is set to be assigned to an executive from SoftBank, according to sources familiar with the matter.

In addition to the founding companies, several major industrial and financial institutions have contributed investment to the venture. These include Nippon Steel Corp, Kobe Steel Ltd, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, indicating support across both industrial and financial sectors.

The development of the AI systems will initially be led by SoftBank and NEC. At a later stage, the project is expected to involve Preferred Networks Inc, an artificial intelligence developer based in Tokyo, further expanding the technical capabilities of the initiative.

The new entity is also planning to seek funding from the New Energy and Industrial Technology Development Organization, a government-affiliated body that has outlined plans to allocate up to 1 trillion yen, approximately $6.3 billion, toward domestic AI development.

Ownership in the company is structured such that SoftBank, NEC, Sony, and Honda each hold stakes exceeding 10 percent. Meanwhile, discussions are ongoing with additional firms that are considering participation as minority shareholders.

Separately, SoftBank recently secured a $40 billion bridge loan intended to finance investments in OpenAI, the developer of ChatGPT, as well as to meet broader corporate funding requirements. The move highlights the company’s continued strategic focus on expanding its presence in the artificial intelligence sector.