Nvidia aims to build an AI ecosystem in Japan, meeting the country’s growing demand for artificial intelligence

TL;DR:

  • Nvidia plans to collaborate with Japanese research organizations, companies, and startups to establish an AI tech-related ecosystem in Japan.
  • The company will set up an AI research laboratory, invest in local startups, and promote AI education.
  • Nvidia’s graphics chips are in high demand for training AI services, leading to increased chip prices.
  • Japan aims to regain tech leadership by focusing on materials science, chipmaking tools, and domestic semiconductor production.
  • Nvidia believes Japan has the expertise to build its own AI ecosystem and harness its data without exporting it.
  • Nvidia supplies chips to Japanese companies like SoftBank, NEC, NTT, Sakura Internet, and Mitsui, supporting their efforts in Japan-specific AI infrastructure.

Main AI News:

In a bid to cater to Japan’s insatiable appetite for cutting-edge technology and a thirst to excel in the realm of artificial intelligence, Nvidia Corp. is embarking on a mission to foster an AI tech-related ecosystem in the Land of the Rising Sun.

The California-based tech giant is poised to collaborate with Japanese research institutions, corporations, and burgeoning startups. During a pivotal meeting with Japanese Economy Minister Yasutoshi Nishimura, Nvidia’s CEO, Jensen Huang, unveiled an ambitious plan to establish AI research facilities while channeling investments into local startups. Huang’s vision extends to educating the masses on harnessing the power of AI.

Nvidia’s formidable graphics chips, adept at processing massive data through parallel computations, have emerged as the foremost tools for honing AI capabilities. Consequently, the demand for Nvidia chips has soared, as organizations and governments worldwide vie to bolster their AI capabilities. Huang’s commitment to Japan’s AI journey was reinforced in his recent meeting with Japanese Prime Minister Fumio Kishida, where he pledged unwavering support for Japan’s AI ambitions.

Huang articulated his vision, stating, “We will build a network of AI factories here in Japan, so that Japan can process the data of the society and create intelligence for the society and for the industry.”

Tokyo, in its quest to reclaim tech supremacy, is leveraging its proficiency in materials science and chipmaking tools. The Japanese government has also injected substantial subsidies into the domestic production of state-of-the-art semiconductors. Yet, Japan has lagged in reaping the rewards of generative AI. In response, Huang asserted that Japan has the prowess to build its own AI ecosystem, equipped with decades of experience in mechatronics, manufacturing, and robotics.

He emphasized Japan’s potential to construct a self-sustaining AI infrastructure, capitalizing on indigenous data reservoirs to nurture its AI capabilities. “There is no reason to export Japan’s data. There is no reason to export Japan’s artificial intelligence,” Huang firmly stated.

Nvidia’s reach extends to several Japanese corporations, including SoftBank Corp., NEC Corp., Nippon Telegraph & Telephone Corp.’s mobile and data services units, as well as Sakura Internet Inc. and Mitsui & Co. These entities are vigorously racing to establish Japan-specific AI infrastructure. Following Jensen’s announcement, shares of Sakura Internet surged by 7.6% to reach ¥1,927, marking their highest level in nearly eight years. Meanwhile, SoftBank and NTT remained relatively stable, with NEC witnessing a 3.6% decline and Mitsui a 1.4% dip.

Japanese Economy Minister Yasutoshi Nishimura recognized the critical role of Nvidia’s GPUs in Japan’s pursuit of generative AI. He asserted, “For Japan to develop its own generative AI, we need Nvidia’s GPUs. We cannot do it without collaborating. I’d like to see Japan lead the world in innovation through a deepened partnership with Nvidia.”

Conclusion:

Nvidia’s strategic efforts to collaborate and invest in Japan’s AI landscape have the potential to reshape the country’s technological future. By fostering partnerships and contributing to local talent development, Nvidia aims to position Japan as a global leader in the field of artificial intelligence. This move not only strengthens Nvidia’s presence in the Japanese market but also supports Japan’s aspirations to regain its tech leadership.

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