Japan Plans Massive AI Initiative Worth US$19 Billion to Develop National Large-Scale AI Model

TOKYO, Dec 21 — Japan is reportedly preparing to embark on one of its most significant technological initiatives to date with the launch of a national artificial intelligence (AI) project valued at roughly 3 trillion yen, or about US$19 billion. The initiative aims to elevate Japan’s position in the global AI race while reducing reliance on technology developed in the United States and China, according to a report by Yomiuri cited by Sputnik and RIA Novosti.

The large-scale project will be jointly driven by government leadership and private sector participation, with SoftBank expected to play a central coordinating role. Together with more than 10 Japanese corporations, SoftBank is anticipated to form a new venture next spring dedicated to developing Japan’s largest AI foundation model.

The company will gather around 100 AI specialists, engineers and researchers, selected through a competitive process from various partner institutions. Preferred Networks, one of Japan’s leading AI technology companies, is also expected to play a key part in the initiative.

Japan’s planned AI foundation model is expected to operate at around one trillion parameters, placing it on par with some of the most advanced AI models under development globally. Unlike proprietary systems controlled by foreign developers, the Japanese model is intended to be open for nationwide industrial use. It will support applications ranging from advanced manufacturing and robotics to automation, research, communications technology and national digital infrastructure.

To successfully train such a large-scale AI, the venture will invest heavily in high-performance computing resources. This includes the purchase of powerful semiconductor chips from US chipmaker Nvidia, as well as the construction of extensive computing infrastructure specifically designed to support AI training and processing.

Recognising the strategic value and high cost of the project, the Japanese government plans to provide substantial financial support. Reports indicate the government intends to allocate around 1 trillion yen over five years beginning fiscal year 2026, with an additional 300 billion yen expected to be included in the 2026 draft budget for AI-related initiatives.

SoftBank, on its part, plans to inject around 2 trillion yen over six years for the development and operation of major data centres critical to sustaining the AI project. Data centres currently under construction in Tomakomai, Hokkaido and Sakai, Osaka Prefecture, are expected to become the core backbone of Japan’s AI ecosystem once completed in fiscal year 2026.

Japan’s leadership has stressed that artificial intelligence is now directly linked to national competitiveness, economic resilience and national security strategy. Over-dependence on foreign technology is increasingly viewed as a vulnerability, and this national AI project is seen as a decisive move to secure Japan’s technological sovereignty and long-term strategic advantage.

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