Nvidia CEO visits Japan after 9 months, Noetra deal in focus
2026-07-15
Nvidia Chief Executive Jensen Huang will speak at an event in Japan on 15-16, and is expected to pitch semiconductor supply to an artificial intelligence development company founded by SoftBank and others, underscoring a growing push to position domestic AI as the next growth area.
Partnership with Noetra in focus
Huang's official visit will be his first in about nine months, since October 2025. On his previous trip, he announced a partnership with Fujitsu on joint development of AI chips. He has also unveiled collaboration with local companies during visits to Taiwan and South Korea since late May, and this visit is drawing attention to a possible tie-up with state-backed AI company Noetra.
Noetra is a foundational-model developer for physical AI established around four core companies: SoftBank, NEC, Honda and Sony Group. Forty-four domestic companies, including manufacturers, have invested, and the government will also provide support of up to 1 trillion yen. Huang and Noetra's president are expected to take part in an event hosted by the Ministry of Economy, Trade and Industry on the 16th. Noetra is seen using Nvidia's latest AI chips as its development platform, setting the stage for Huang's trademark top-level sales pitch.
Demand push through sovereign AI
Countries are focusing on 'sovereign AI', the development and operation of AI within their own borders, because AI is becoming a strategic asset for economic security. In June, the Trump administration directed restrictions on foreign use of Anthropic's advanced AI model 'Mythos' and other services were temporarily suspended. The concentration of cutting-edge AI model development in US hands has heightened concern in other countries.
In Europe, France is backing domestic AI start-up Mistral AI through government support. China is also building its own AI supply chain under state leadership, centered on AI model developers such as DeepSeek and chips from Huawei Technologies. For Nvidia, such sovereign AI initiatives represent a new revenue opportunity. The company is involved in AI development plans in more than 20 countries, including the UK, Germany, France, India and the United Arab Emirates.
Revenue tops $30 billion
Nvidia supplies the AI chips needed to build data centers in various countries, and revenue related to sovereign AI in the fiscal year ending January 2026 more than tripled from the previous year to exceed $30 billion, or about 4.9 trillion yen.
At the same time, the focus on sovereign AI also serves to diversify risk. Just over 50% of Nvidia's data center revenue comes from five companies, including US hyperscalers such as Google and Microsoft. Its stock has been weak since May, but rising expectations for sovereign AI could help improve investor sentiment and trigger a rebound.
Even so, competition is intensifying. Canadian AI heavyweight Cohere has said it plans to merge with a German peer to support sovereign AI development. Reuters reported on the 1st that French regulators are preparing to accuse Nvidia of suspected anti-competitive conduct. The report said this could lead to a hefty fine.
It remains unclear whether Nvidia can maintain its dominance. US chip start-up Cerebras Systems plans to expand data centers equipped with its chips to 200 megawatts by the end of 2027 in Norway, Finland, France and other countries. To turn sovereign AI into its next revenue stream, Nvidia will need to keep a close watch on regulators and rivals alike.
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