The Japanese government is allocating 387.3 billion yen, or about $2.3 billion, to fund the first year of a project to develop a domestic AI foundation model and infrastructure for robots, according to Reuters.
The initiative is being led by Noetra, a company backed by 44 businesses including SoftBank, NEC, Honda and Sony. Noetra plans to acquire 27,500 Nvidia Rubin chips, begin building infrastructure in April 2027 and start operations in June 2028.
The project aims to give Japanese companies a domestic model for robots that lets them keep control of their industrial data. Unlike today’s industrial robots, physical AI systems use foundation models to understand language, perceive surroundings and adapt to changing environments.
Japan’s Ministry of Economy, Trade and Industry could ultimately give Noetra a total of one trillion yen ($6.1 billion) through 2030. Japan plans to deploy 10 million AI-enabled robots by 2040 across industries including manufacturing, shipbuilding and nursing.
Noetra CEO Hironobu Tamba said the goal is to strengthen Japan’s domestic AI capabilities. “We’ve been able to bring together people who have been working on AI in Japan,” Tamba said. “Honestly, I think this may be our last chance” to avoid outsourcing AI capabilities.
Japan already has major strengths in industrial machinery and robotics but has trailed the U.S. and China in foundation models and hyperscale computing.