Japanese giants unite to develop 'physical AI' and reclaim 'robot kingdom' status

Japan's leading corporations are uniting to develop "physical AI" for robots, a strategic move aimed at reclaiming the nation's former prestige as a "robot kingdom." This burgeoning "AI alliance" transcends traditional corporate boundaries, driven by the increasing demand for AI applications in manufacturing and other industries.

The initiative is spearheaded by SoftBank, the prominent Japanese investment firm. Alongside Sony Group and Honda Motor, SoftBank has established a joint venture named "Japan AI-based Model Development." This company is concentrating its efforts on "physical AI," a critical component for controlling robots primarily used in manufacturing automation. This endeavor signifies Japan's serious commitment to advancing AI technology, particularly in areas where it has lagged behind the United States and China.

Following the initial move by SoftBank and three other companies, a significant number of major Japanese industrial players are joining the effort. Approximately 15 companies have expressed their intention to invest in "Japan AI-based Model Development," recognizing the potential of Japanese-developed physical AI. This group includes electronics giant Toshiba, IT and infrastructure firm Hitachi, and KDDI Research Institute from the telecommunications sector. An additional ten companies, including IT firm Fujitsu, are reportedly considering further investment.

Companies are eager to join this project from its early stages to ensure their specific needs and industry requirements are incorporated into the development of "Japanese-style physical AI." The "Japan AI-based Model Development" venture plans to make the developed AI accessible not only to its investing companies but also to a broader range of users.

Physical AI is poised to have a profound impact across various sectors, including logistics, healthcare, elder care, and transportation, extending far beyond simple manufacturing applications. Market projections estimate the physical AI market could reach $68.5 billion by 2034, a thirteenfold increase from last year. Morgan Stanley anticipates over a billion humanoid robots will be in use globally by 2050.

The Japanese government is also providing support for this crucial field. Since March, a national research and development institute under the Ministry of Economy, Trade and Industry has been soliciting applications for Japanese AI development companies. "Japan AI-based Model Development" has applied for this program, which offers up to 1 trillion yen (approximately $9.43 billion) in development funding over five years to selected companies.