A group of major Japanese corporations, including SoftBank, NEC, Sony Group, and Honda Motor, is leading the creation of a new company focused on developing domestically built artificial intelligence, according to sources.

Each of the four companies is expected to hold a stake exceeding 10% in the venture, while additional firms are in talks to join as minority investors.

The initiative aims to build high-performance AI systems that can be deployed across Japanese industries, as the country seeks to strengthen its position against leading AI players in the United States and China.

Development efforts are expected to involve engineers from SoftBank as well as Tokyo-based AI firm Preferred Networks.

The new company also plans to seek support under a government-backed AI development program administered by the New Energy and Industrial Technology Development Organization, which has earmarked ¥1 trillion in funding over five years starting in fiscal 2026.