SoftBank, NEC, Sony, Honda Form New Company To Target AI Rollout, Close Gap with US and China

by | Apr 13, 2026 | General

Some of Japan’s biggest names, including SoftBank Corp (OTC:SFTBY), NEC Corp (OTC:NECPY), Honda Motor Co (OTC:HNDAF) and Sony Group Corp. (OTC:SNEJF) have established a new company focused on large-scale artificial intelligence for domestic businesses, according to a report seen on Sunday.

Why It Matters

The initiative was taken to narrow the gap with U.S. and Chinese AI leaders, with expected backing from the Japanese government, according to a report by Japan Today. The group will initially roll out the model to domestic firms, with plans to expand into factory robotics and other applications.

The venture is expected to hire about 100 AI engineers and will be led by a SoftBank executive. Development will initially be spearheaded by SoftBank and NEC, with Tokyo-based AI developer Preferred Networks set to join at a later stage.

The company is planning to apply for funding from the New Energy and Industrial Technology Development Organization (NEDO), a government-backed body that has earmarked up to 1 trillion yen (approximately $6.3 billion) to support domestic AI development.

Major industrial and financial players, including Nippon Steel Corp, Kobe Steel Ltd, Mitsubishi MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank, have also invested in the newly established company, signaling broad-based support across sectors.

SoftBank, NEC, Sony and Honda each took a stake of more than 10% in the new firm, while several other firms are negotiating to invest as minority shareholders, according to Jiji Press, a Japanese news agency.

SoftBank Expanding into AI

Late last month, SoftBank secured a $40 billion bridge loan to fund investments in ChatGPT maker OpenAI and support general corporate needs, underscoring its deepening push into artificial intelligence.

Benzinga Edge Stock Rankings indicate that SoftBank has Growth score in the 68th percentile. NEC Corp. has a Growth score in the 85th percentile. Honda Group and Sony Group has a Growth score in the 15th percentile and 4th percentile, respectively.

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