Honda Joins ¥1 Trillion Japanese AI Venture for Autonomous Driving
SoftBank, NEC, Honda and Sony Group formed a new venture to build a trillion-parameter ‘Physical AI’ model for robotics and autonomous systems. NEDO plans to allocate about ¥1 trillion over five years and Honda will deploy the model in its autonomous driving platforms, deepening Japan’s industrial AI capabilities.
1. Formation of New AI Venture
SoftBank, NEC, Honda and Sony Group launched Japan AI Foundation Model Development, aiming to build a trillion-parameter Physical AI model to control robots and machines rather than process language. Preferred Networks will also contribute, with SoftBank and NEC leading AI development and a SoftBank executive named as president overseeing about 100 engineers.
2. Honda's Role in Autonomous Driving
Honda will integrate the new AI model into its autonomous driving platforms, leveraging the venture’s robotics-focused capabilities to advance its self-driving vehicle technology by training on domestic data and next-generation perception systems.
3. Funding and Strategic Implications
Japan’s NEDO has earmarked roughly ¥1 trillion ($6.28 billion) in AI support over five years starting fiscal 2026; investors include Nippon Steel, Kobe Steel, MUFG, SMBC and Mizuho. The venture addresses Japan’s reliance on foreign AI infrastructure by keeping data and training domestic.