Japan Invests ¥387.3 Billion in Physical AI

The Japanese industry ministry unveiled a ¥387.3 billion investment on June 30, 2026, to create a domestic "physical AI" foundation model ^[1]. This project, led by a SoftBank-backed consortium, focuses on developing multimodal models specifically designed to control robots ^[1][2]. The initiative aims to secure Japan’s global position in the manufacturing sector by automating complex real-world tasks ^[2].

The funding will support the creation of advanced compute resources and domestic AI capabilities ^[2][3]. By prioritizing physical AI, officials intend to bridge the gap between digital intelligence and mechanical action ^[1]. This move reduces dependence on international technology providers for critical industrial automation ^[1].