SoftBank has unveiled plans for a new company dedicated to ‘physical AI’ — artificial intelligence systems capable of controlling machines and robots with minimal human intervention. The initiative, announced alongside strategic partners Sony, Honda, and Nippon Steel, represents Japan’s bet that embodied intelligence will be the next frontier in artificial intelligence.
The 2030 target timeline signals a coordinated national effort. Unlike cloud-based AI, which can run on any data centre, physical AI requires domestic manufacturing, robotics expertise, and industrial base. Japan, with its legacy in consumer electronics, automotive robotics through Honda’s ASIMO, and materials science via Nippon Steel, has unique assets.
‘This is not about chatbots,’ said a SoftBank executive. ‘This is about intelligence that lives in the physical world.’
Why it matters: The physical AI market could exceed $500bn by 2035, according to preliminary estimates. Tesla’s Optimus and Boston Dynamics have shown Western ambition. SoftBank’s coalition suggests Japan is not surrendering the field.
Watch for: Partnership details, funding commitments, and prototype timelines expected by year-end.