In a strategic move to bolster its artificial intelligence (AI) sector and reduce reliance on American technology, the Japanese government has announced a substantial investment of 72.5 billion yen ($470 million) to support local companies in developing AI technologies. This initiative is spearheaded by the Ministry of Economy, Trade and Industry, which has chosen five companies, including telecom giant KDDI and cloud service provider Sakura Internet, to receive this funding.
Sakura Internet will receive the largest portion of the aid, amounting to 50.1 billion yen, which underscores the government’s commitment to advancing cloud infrastructure and AI capabilities within Japan. KDDI is set to receive 10.2 billion yen, aimed at enhancing its technological developments in AI.
The need for high-performance computing is critical in the field of generative AI, which requires extensive data processing capabilities. Currently, Japanese firms largely depend on American services like Amazon Web Services and Microsoft for the computing power essential for AI development.
The global shortage of graphic processing unit (GPU) chips, crucial for building AI systems, adds another layer of complexity. Japanese companies face challenges in securing these vital components, which are in high demand globally, particularly for advanced chips like Nvidia’s H100.
With this funding initiative, Tokyo aims to strengthen Japan’s AI development for economic security and reduce its dependency on foreign technology. This government support is also intended to help Japanese companies compete more effectively against U.S. counterparts, who have been rapidly advancing in AI supercomputing without the need for similar subsidies. The upcoming announcement of detailed funding plans is eagerly anticipated, as it will further define Japan’s strategic directions in AI research and development.
