SoftBank, NEC, Honda, Sony Launch Joint Venture to Develop Trillion-Parameter Physical AI Model

Gate News message, April 15 — SoftBank, NEC, Honda, and Sony Group have established Japan AI Foundation Model Development, a joint venture targeting a trillion-parameter AI model designed to control industrial robots, autonomous vehicles, and factory systems. The consortium aims for initial deployment by 2030.

SoftBank and NEC will lead development, Honda will deploy the model in autonomous driving systems, and Sony will contribute robotics and hardware expertise. Ownership is distributed among the four founding companies and major industrial and financial firms including Nippon Steel, Kobe Steel, MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, each holding stakes above 10%.

The project is expected to receive support from Japan's New Energy and Industrial Technology Development Organisation (NEDO), which has allocated approximately ¥1 trillion (around $6.3 billion) for AI development over five years starting in fiscal 2026. All model training and data processing will remain within Japan, avoiding reliance on foreign cloud providers.

Japan accounts for roughly 70% of global industrial robotics supply and hosts five of the world's ten largest robot manufacturers. The Ministry of Economy, Trade and Industry aims to secure 30% of the global physical AI market by 2040. The domestic physical AI market, valued at $307 million in 2025, is projected to reach $6.76 billion by 2035. SoftBank's involvement follows its participation in OpenAI's $40 billion funding round in 2025.