Japan's SoftBank, NEC, Honda, Sony form new company to develop domestic AI foundation model

Japan's SoftBank, NEC, Honda, and Sony are leading the formation of a new company, joined by Nippon Steel, Kobe Steel, and three major banks, to focus on AI foundation model development. The company plans to gather about 100 AI developers, with a SoftBank executive serving as president.

Against the backdrop of AI development leadership by U.S. and Chinese companies, the new company will leverage Japanese government support to build domestic AI foundation models, aiming to catch up. Results will be used in Honda's autonomous driving; in the future, it will also enter the AI field for robot control and open usage to all Japanese enterprises.

Japan's New Energy and Industrial Technology Development Organization (NEDO) is soliciting AI development companies. The new company will apply soon; if selected, it can receive 1 trillion yen in support over five years starting from fiscal 2026. Earlier, Japan revised the Personal Information Protection Act, removing the prior consent requirement for sharing some personal data, creating a favorable environment for AI development.