The Japanese government has unveiled plans to create a domestically developed artificial intelligence model and put roughly 10 million AI-equipped robots into operation across 18 sectors by 2040 - building on a 14-year growth strategy announced last month, which targets ¥370 trillion ($2.3 trillion) in combined public and private investment across 17 priority areas, including physical AI, semiconductors, quantum technology, and nuclear fusion.
Kawasaki KaleidoThe initiative will receive up to 1 trillion yen (approximately $6.1 billion) in government funding over the next five years. Crucially, the funding is tied to annual milestone reviews - making the trillion-yen figure a ceiling rather than a guarantee, with Tokyo retaining the ability to pull back if early targets are missed.
The AI model will be developed by Noetra, a consortium formally commissioned by Japan's Ministry of Economy, Trade and Industry (METI) and its innovation agency NEDO. Noetra is majority-owned by SoftBank, NEC, Sony Group, and Honda, with Fujitsu and Rakuten reportedly weighing whether to join. The consortium is also working alongside AIST, Japan's national research laboratory. Noetra's investor base is expected to grow to 44 participating companies spanning automotive, electronics, manufacturing, finance, and logistics. The technical goal is a multimodal foundation model capable of processing language, images, video, and sensor data simultaneously - giving robots the ability to interpret a physical environment and act within
