The Ministry of Economy, Trade and Industry (METI) in Japan announced that it will provide up to 72.5 billion yen ($468.5 million) in subsidies for five projects focused on building supercomputers for the development of artificial intelligence (AI) technology.
The ministry’s goal is to promote the domestic creation of generative AI (GenAI) systems by improving computing infrastructure within Japan. Specifically, the ministry will provide 10.2 billion yen to telecommunications company KDDI Corporation and 50.1 billion yen to internet service provider Sakura Internet Inc. Subsidies will also go to GMO Internet Group Inc. and various startups.
The recipient companies will be required to allow GenAI developers access to use the supercomputers for at least three years. This represents the first time KDDI will establish large-scale computing infrastructure dedicated to AI development.
The ministry hopes these investments will strengthen Japan’s domestic capabilities in cutting-edge AI technology and reduce reliance on infrastructure hosted abroad.
In 2023, a survey by the consulting firm PwC found that only 10 percent of Japanese respondents had used generative AI like ChatGPT. However, just six months later, that number had skyrocketed to 73 percent. This rapid increase demonstrates how perceptions of AI are rapidly changing in Japan.
Prominent Japanese companies are also making significant investments in generative AI technology. NEC, a major IT and electronics conglomerate, has developed its own enterprise-focused generative AI system called cotomi. NEC plans to release additional industry-specific versions of cotomi for sectors like manufacturing and healthcare.
Furthermore, the Japanese startup Preferred Networks is designing custom computer chips tailored to power generative AI applications. This suggests that Japanese firms see generative AI as a transformative technology and are racing to develop their own capabilities in this space.
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