.png){kind=logo}
Newsletter N°89 - May 2026
📶 Telecom: SoftBank rallies Japanese manufacturers behind a homegrown “Physical AI” initiative
SoftBank is expanding its AI ambitions beyond generative models by assembling a consortium of roughly 30 Japanese companies to support a domestic “Physical AI” initiative. The project aims to develop AI systems capable of powering robots, industrial equipment and autonomous systems, positioning Japan to compete more directly with AI ecosystems emerging in the United States and China.
SoftBank Group CEO Masayoshi Son
According to reports, around 10 companies are expected to formally decide on participation in June. Initial financial commitments are expected to remain relatively modest, with each company investing tens of millions of yen (with ¥10 million equivalent to roughly US$63,000). While limited in scale at this early stage, the consortium is designed as a long-term industrial platform rather than a traditional venture investment.
​
SoftBank, NEC, Honda and Sony are expected to play central roles, each holding stakes exceeding 10%. Additional investors reportedly include MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Steel and Kobe Steel, reflecting participation across finance, manufacturing and heavy industry.
​
Unlike conventional large language models focused on text generation and digital productivity, the initiative targets so-called “Physical AI”. Combining computer vision, sensor data and decision-making models, the technology is intended for applications such as factory robotics, warehouse automation and mobility systems.
​
A key objective is to develop an AI platform usable across the industrial supply chain by incorporating companies involved in materials, machine tools and logistics. Rather than optimizing isolated tasks, the consortium aims to create AI capable of making broader operational decisions across multiple manufacturing environments.
​
The roadmap is particularly ambitious. The company aims to develop one of Japan’s largest AI models by 2027, targeting approximately one trillion parameters, placing it among the country’s most powerful domestic AI systems.
​
The platform is then expected to evolve beyond text-based intelligence. As early as 2029, the model is planned to process multiple forms of information simultaneously, including text, images and audio. By the early 2030s, the vision expands further toward fully integrated “Physical AI” capable of handling real-world information such as weight, temperature, distance and location data in a unified manner.
​
The initiative aligns with Japan’s broader push for sovereign AI development as policymakers and industry leaders seek alternatives to growing dependence on U.S. and Chinese platforms. By combining telecom infrastructure, robotics expertise and industrial manufacturing capabilities, SoftBank is positioning itself not simply as an AI investor but as a potential orchestrator of Japan’s next industrial AI ecosystem.