Japan Invests Approximately $2.38 Billion to Support SoftBank's Development of Domestic AI Models

On July 1, according to Kyodo News, Japan's Ministry of Economy, Trade and Industry announced on the 30th that it will provide 387.3 billion yen (approximately $2.38 billion) to support a new company led by SoftBank, which is dedicated to developing domestic artificial intelligence (AI) foundational models, as part of the development commission for the fiscal year 2026. The ministry will support research and development in the field of physical AI that combines robotics and AI technology, thereby enhancing the competitiveness of Japan's manufacturing sector, where it holds a competitive advantage. The new company, named 'Noetra' (formerly Japan AI Foundational Model Development), is established with SoftBank, NEC, Honda, and Sony Group as core members. In addition to advanced Japanese language understanding and reasoning capabilities, it will also focus on developing foundational models that can recognize images, videos, audio, and physical spaces. The company has been selected for a support project under the 'New Energy and Industrial Technology Development Organization' (NEDO) affiliated with the ministry.