Japan’s Tech Titans Just Teamed Up to Build a Trillion-Parameter AI—And There’s No Talking

Japan has no interest in creating the next ChatGPT.

On Sunday, SoftBank, NEC, Honda, and Sony Group together they formed a new company with one goal: create a trillion-parameter AI that runs machines, not conversations.

This move is a direct bet on what the community calls “Physical AI”: the idea that the next frontier is not the language models that write your emails, but the AI ​​systems that control a robot arm, drive a car, or run a factory. Japan, with its industrial base and decades-old heritage, thinks it has a natural edge that Silicon Valley and Beijing cannot easily emulate.

Adoption reportsSoftBank and NEC will lead the real development of AI. Honda will post results on a self-driving car. Sony brings robotics and gaming devices to the table. Preferred Networks, a respected AI developer based in Tokyo, is also involved. The company, which translates roughly in English to “Japan AI Foundation Model Development,” They want to hire about 100 AI engineers, and the head of SoftBank called the president.

Banks and steel manufacturers also appeared. Nippon Steel, Kobe Steel, MUFG Bank, Sumitomo Mitsui Banking, and Mizuho Bank are all listed as investors, so this is much bigger than just a simple tech startup.

Government funding will go through NEDO, the national R&D organization it has established they saved about ¥1 trillion-about $6.28 billion-in AI grants over five years starting in 2026. The Japan AI Foundation Model Development is expected to use and appears to be optional.

Japan has for years exported its data to US cloud services and paid for the access – a so-called “digital deficit” that has cost a fortune and left Japanese companies dependent on foreign technology. The new company wants AI trained on Japanese data, staying in Japan, not feeding OpenAI or Google pipelines.

This makes a big difference to SoftBank’s global operations. The company led OpenAI’s $40 billion investment in 2025, and now it is on the other side of the table – to put a domestic model that means to create an autonomous system similar to the American natural AI that has been sold.

Physical AI is heating up the world and big companies are starting to pay attention. Tesla is developing its own robots, OpenAI is also supporting AI/robotic startups and China’s political agenda. including big money in the area. Earlier this year, the leading stablecoin company Tether he put in humanoid robotics startup Generative Bionics, which markets its machines as “Physical AI” systems designed to complement robotics with intelligence that perceives and reacts to the world – not just responding to pressure.

The goal of Physical AI projects is 2030, according to to local reports. NEDO began accepting proposals for the funding program at the end of March—meaning the clock is already ticking.