Nvidia chief Jensen Huang spent two days in Tokyo last week — 15 and 16 July — securing deals that span Japan’s entire technology ecosystem. The agreements include a national AI factory, partnerships with leading robotics companies, and supply-chain deals with chip-material suppliers. Huang’s message was clear: Nvidia is targeting Japan’s factory floor, and many of the country’s biggest manufacturers are joining in.
At the heart of the push is Noetra, a consortium of roughly 44 domestic firms — including SoftBank, Sony, NEC and Honda — that Japan’s government has assembled to build its own physical AI. Tokyo is committing up to ¥1 trillion (£6.2bn) over five years to develop foundation models for robots, vehicles and factory automation. Nvidia will supply the hardware: a Vera Rubin AI factory data centre powered by its next-generation chips, scheduled to launch in 2028. Noetra’s roadmap runs in three stages: a reasoning model strong in Japanese-language skills from fiscal 2026; an omni-modal version handling text, images, video and audio by 2028; and a ‘Real-world Native AI’ for robots by 2030.
Separately, a robotics coalition including Fanuc, Yaskawa, Kawasaki Heavy, Fujitsu, Hitachi, NEC, Sony, SoftBank, Kubota and robotics group AIRoA plans to build on Nvidia’s Cosmos models. In Tokyo, Nvidia unveiled Cosmos 3 Edge, a version that runs on its Jetson Thor chips inside machines. Some firms are already testing a shared control system; Honda R&D and Omron are building on the tools now. Huang said: “The next frontier of AI is in the physical world, and this is a once-in-a-generation opportunity for Japan.”
Toyota, which already uses Nvidia chips across much of its stack, committed its next-generation vehicles to Nvidia’s Drive platform at CES in January 2025. The newer work extends Nvidia into manufacturing simulations, vehicle software, and traffic-reading systems. Toyota’s cars will run advanced driver assistance — steering and braking with a driver still required — a more conservative approach than rivals such as Waymo and Tesla.
The implications for the UK are significant. Japan’s strategy — backed by £50bn in public and private investment and a target of 10 million AI-equipped robots by 2040 — puts physical AI at the centre of industrial policy. UK businesses that rely on Japanese manufacturing, robotics or automotive supply chains could face shifts in cost, availability and technology standards. The UK’s Information Commissioner’s Office (ICO) is monitoring AI governance, while the EU AI Act imposes rules on high-risk AI systems, including those used in industrial robots. British firms may need to align with both frameworks if they trade with Europe or partner with Japanese firms. Experts caution that while the opportunities for UK tech companies in simulation, edge computing and AI training are real, the risk is that Britain falls behind without a comparable national strategy for physical AI.