TOKYO, Dec 21 — Japanese authorities, in collaboration with the private sector, will launch a large-scale project to develop a national artificial intelligence (AI) system costing approximately ¥3 trillion (approximately US$19 billion), Sputnik/RIA Novosti reported, citing a Yomiuri newspaper report that cited a draft plan.

SoftBank and more than ten other Japanese companies are expected to establish a new venture next spring to develop the country’s largest AI baseline model. The project aims to close the gap between Japan and the United States (US) and China.

The new company will be created under SoftBank’s leadership and will bring together approximately 100 experts from companies selected via a competition, including SoftBank engineers and developers from Preferred Networks.

The model being developed is expected to reach the level of one trillion parameters, comparable to leading global developments in the US and China. It is planned to be open to Japanese companies so they can adapt it to their own needs, from manufacturing to robotics.

To train the model, the company will purchase large quantities of high-performance semiconductors from US chip maker Nvidia and create a large-scale computing infrastructure.

Due to the high cost of the project, the government intends to partially subsidise infrastructure costs and support the collection and acquisition of data for AI training.

Specifically, the government intends to invest approximately ¥1 trillion (approximately US$6.3 billion) over five years, beginning in fiscal 2026. Moreover, the draft budget for 2026 is expected to include over ¥300 billion (over US$1.9 billion) in related expenditures.

SoftBank, in turn, intends to invest approximately ¥2 trillion (approximately US$12.7 billion) over six years in the construction and operation of data centres that will be used for AI development and delivery. SoftBank expects the development of national AI to stimulate the emergence of new products and services and generate significant domestic demand, enabling it to recoup its large-scale investments.

The company is currently building data centres in the city of Tomakomai in Hokkaido, and in Sakai in Osaka Prefecture, scheduled to be operational by fiscal year 2026. These facilities are expected to form the foundation of the national AI infrastructure.

The Japanese government emphasises that AI directly impacts industrial competitiveness and national security, and that excessive reliance on foreign developments poses strategic risks, which was one of the reasons for launching the project. — Bernama-Sputnik/RIA Novosti