Japan is preparing to invest around ¥1 trillion ($6.3 billion) over five years to support the development of home-grown artificial intelligence, according to people familiar with the plan. The funding is expected to begin in fiscal 2026.
The initiative will involve a new company formed by roughly 10 firms, including SoftBank Group, with the goal of building Japan’s largest foundational AI model through public-private cooperation. About 100 engineers from SoftBank and AI startup Preferred Networks are expected to participate.
The push reflects Japan’s desire to compete more directly with the U.S. and China in AI, a technology increasingly seen as critical to economic competitiveness and national security. The government also aims to strengthen domestic data centers, secure semiconductor supplies, and advance “physical AI” that integrates artificial intelligence with robotics.