The Japanese government is set to allocate approximately 1 trillion yen (about US$6.34 billion) over a five-year period to support the establishment of a new company dedicated to developing home-grown artificial intelligence (AI). This initiative aims to foster a collaborative environment among major firms in the country, with the project expected to kick off in fiscal 2026, which begins next April, according to a source familiar with the matter.
The company, which will be founded by around 10 firms, including notable players like SoftBank Group Corp, is focused on creating Japan’s largest base AI model through a partnership between public and private sectors. This endeavor reflects Japan’s strategic efforts to advance its AI capabilities, positioning the nation to compete with leading global players such as China and the United States, whose advancements in AI are increasingly viewed as critical to national security.
As part of this initiative, around 100 engineers from SoftBank and the AI startup Preferred Networks Inc. are expected to join the new company, contributing expertise that could accelerate the development of AI technologies. The government support is also aimed at addressing challenges related to semiconductor procurement, as the industry faces intensified global competition for these essential components.
Japan’s move to enhance its AI sector comes at a time when the technological landscape is rapidly evolving, with significant investments pouring into AI research and development worldwide. By fostering a domestic AI ecosystem, Japan hopes to secure a competitive edge while ensuring that it does not fall behind in technological advancements that could have far-reaching implications for economic and security interests.
The establishment of this new AI-focused company not only symbolizes a commitment to innovation but also underscores the increasing importance of technology in shaping the future of national security and economic growth. As AI continues to transform various sectors, Japan’s strategic investment may prove pivotal in establishing a robust AI infrastructure capable of meeting domestic and global demands.
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