What to watch for after Jensen Huang’s Japan visit

Jensen Huang, CEO of NVIDIA, concluded a two-day visit to Tokyo on July 15 and 16, engaging with Japan's industrial leaders and chip suppliers. During his trip, Huang secured a range of agreements aimed at expanding NVIDIA's footprint within Japan's technology sector. These include a national AI factory initiative, collaborations with leading robotics firms, and partnerships with key chip material providers essential for NVIDIA's upcoming AI chip generations. Huang emphasized that the future of artificial intelligence lies in the physical world, particularly in factory settings, robotics, and machinery, positioning Japan as a central player in this new technological era. NVIDIA's strategic moves in Japan follow recent engagements in Taiwan and South Korea, underscoring a broader regional expansion strategy. The collaboration with Japan's industrial giants reflects a mutual dependency, akin to a past financial support from Sega that saved NVIDIA during a critical period. Today, both parties aim to co-develop the infrastructure necessary for the so-called "physical AI" era, beginning with three major initiatives. One such project is Noetra, a consortium comprising around 44 Japanese firms, including industry titans like SoftBank, Sony, NEC, and Honda. This alliance seeks to develop indigenous AI technologies tailored for robotic applications, vehicle operations, and factory automation. The Japanese government has allocated up to one trillion yen ($6.2 billion) over five years to fund this endeavor, focusing on creating foundational models capable of operating complex machinery. NVIDIA will supply the required hardware through its planned "Vera Rubin AI factory," a large-scale data center equipped with advanced processors, set to debut in 2028. This facility will feature 13,750 Vera CPUs and 27,500 Rubin GPUs, offering substantial computational power. Noetra will manage the project, with phased releases of its AI capabilities, starting with a language-focused model in fiscal 2026, followed by an omnimodal system by 2028, and finally a "Real-world Native AI" solution for robotics by 2030. Another key partnership involves the robotics coalition, where prominent Japanese manufacturers such as Fanuc, Yaskawa, Kawasaki Heavy, Fujitsu, Hitachi, NEC, Sony, SoftBank, Kubota, and AIRoA have pledged support for NVIDIA's Cosmos models. These models, developed in collaboration with global AI labs, are designed to enhance machine autonomy. At the Tokyo meeting, NVIDIA introduced Cosmos 3 Edge, a variant optimized for deployment within industrial equipment using its Jetson Thor chips. Early tests indicate potential for shared control systems among participating companies, while others like Honda R&D and Omron are actively integrating these tools into their workflows. Toyota's involvement further illustrates the breadth of NVIDIA's influence in Japan. The automaker utilizes NVIDIA's chips extensively across its operations, from vehicle design to production processes. At CES 2025, Toyota announced its commitment to NVIDIA's Drive platform for its next-generation vehicles. This agreement extends beyond automotive applications, encompassing simulation tools for production line design, software for vehicle operation, and systems for analyzing traffic patterns. Toyota's approach to autonomous driving emphasizes safety, incorporating advanced driver assistance systems that require human oversight, distinguishing it from more aggressive approaches by companies like Waymo and Tesla. The significance of Huang's visit lies in its role in elevating physical AI as a cornerstone of Japan's industrial policy. With a shrinking workforce, Japan aims to deploy 10 million AI-powered robots across 18 sectors by 2040, supported by $65 billion in combined public and private investments. The nation's AI Robotics Strategy, unveiled in March, outlines ambitions to secure over 30% of the global market share in this emerging field. Through these collaborative efforts, Japan is positioning itself as a leader in the integration of AI into physical environments, leveraging NVIDIA's expertise to drive innovation and economic growth.