Softbank and Japan's Elite Challenge US and China AI

Softbank, in collaboration with several giants of the Japanese industry, is embarking on an ambitious project to develop a national artificial intelligence. The initiative, which includes companies such as NEC, Honda, Sony, as well as three major banks, Nippon Steel, and Kobe Steel, aims to create a foundation model with approximately one trillion parameters by the end of the decade.

This project focuses on the development of physical AI, a technology capable of autonomously controlling robots and machines. This approach aims to reduce the growing dependence of Japanese companies on foundation models developed by foreign players like OpenAI, Anthropic, or Alibaba.

Concerns regarding the transfer of sensitive data to foreign servers have prompted Softbank to ensure that all data processing takes place on Japanese soil. A data center is currently under construction in a former Sharp factory in Sakai, near Osaka, to meet this requirement.

The project is receiving financial support from the NEDO funding agency, which plans to invest approximately one trillion yen, or about $6.7 billion, in the development of national AI over the next five years. Softbank is seen as a prime candidate to receive a portion of these funds, thereby strengthening its position in the field of AI in Japan.