Japanese technology titans SoftBank Group, Sony, NEC, and Honda are collaborating on a new artificial intelligence joint venture. Their singular objective: to construct a trillion-parameter model for autonomous machines.

The companies are making a significant investment in "physical AI," designed to operate in the real world, controlling robots, vehicles, and factory operations.

SoftBank and NEC will lead AI development, while Honda will be the primary deployer in its autonomous vehicles. Sony's contribution spans robotics and gaming hardware. Preferred Networks Inc., an AI startup specializing in deep learning, is also a partner.

The new entity, named "Japan AI Foundation Model Development," aims to recruit approximately 100 AI engineers. A senior SoftBank executive will head the venture.

Key industrial firms including Kobe Steel, Nippon Steel, Mizuho Bank, Sumitomo Mitsui Banking, and MUFG Bank are listed as investors. The Japanese government is also contributing, with its New Energy and Industrial Technology Development agency earmarking about $6.28 billion over five years.

The project embraces a "sovereign AI" strategy, seeking to train AI on domestic data and retain it within Japan. This aims to counter the nation's "digital deficit" and reduce reliance on U.S. cloud providers like Google and OpenAI.

This initiative marks a strategic shift for SoftBank, which has previously invested heavily in U.S. AI firms. The new venture targets the launch of "physical AI applications" by 2030.