Story perspectives

Japan to Invest 1 Trillion Yen in Home-Grown AI

12/21/2025

Center

Japan's AI Investment

Japan plans to invest about 1 trillion yen over five years to build a home-grown AI company.
The effort includes 10 firms, including SoftBank, to build Japan's largest AI model via public-private cooperation, starting fiscal 2026.
U.S. Secretary of State Marco Rubio emphasized maintaining strong ties with Japan while engaging with China amid rising tensions.
He said the United States can balance commitments to both nations without compromising Indo-Pacific alliances.

Right

Takaichi's Approval Declines

Japanese Prime Minister Sanae Takaichi's approval rating dropped to 67.5% after controversial remarks on Taiwan.
Observers say the remarks have harmed Japan's economy.
A Kyodo News survey found 64.6% of respondents are concerned about the nation's fiscal health after a significant supplementary budget was enacted.
Meanwhile, 82.4% believe government inflation-relief measures, such as "rice vouchers," will have minimal effect.
64.1% viewed a recent tax reform agreement positively.

History

Historical Context

Japan's economic challenges began with the asset price bubble's collapse in 1990, leading to the "Lost Decades" of stagnation. In 2013, Prime Minister Shinzo Abe introduced "Abenomics," aiming for revitalization through aggressive monetary easing and fiscal stimulus, including a 2% inflation target and 28 trillion yen in spending. Today, Japan's focus on AI investment continues this strategy, aiming to enhance its global economic standing.

1 of 3

Japan's AI Investment

Japan plans to invest about 1 trillion yen over five years to build a home-grown AI company.
The effort includes 10 firms, including SoftBank, to build Japan's largest AI model via public-private cooperation, starting fiscal 2026.
U.S. Secretary of State Marco Rubio emphasized maintaining strong ties with Japan while engaging with China amid rising tensions.
He said the United States can balance commitments to both nations without compromising Indo-Pacific alliances.

1 / 3