Japanese firms deepen Nvidia ties, exposing domestic AI dependence

2026-07-19

Japanese firms announce a flurry of collaborations

Jensen Huang, chief executive officer of U.S. semiconductor giant Nvidia, wrapped up his main schedule in Japan on Sept. 15-16. He met with many corporate leaders and urged support for domestic AI, while also laying bare Japanese industry’s dependence on the company.

Nvidia posted updates on Huang’s itinerary on its official blog. It highlighted a company event, a joint event with Sega, social gatherings and lunches with Japanese executives, and a speech with Economy, Trade and Industry Minister Ryosei Akazawa, who wore a leather jacket. The blog was titled 'Nvidia and Japan, bringing AI and robotics to every industry.' More than 40 companies, including Toyota Motor, Canon and Astellas Pharma, were featured.

Japanese companies also announced a string of partnerships and collaborations. Hitachi will work with Nvidia on verifying the operation of an 'autonomous factory' that requires little human intervention, while Mitsubishi Heavy Industries will adopt Nvidia technology for cooling systems used in data centers.

Seen as little more than chip purchases

Japan's industrial sector welcomed Huang in step. 'Even when they say 'partnership' or 'collaboration,' all it really means is buying Nvidia chips,' said one corporate executive with a wry smile.

Huang has boosted Nvidia's brand by traveling the world himself as the company's chief salesman. Japanese companies are also seen as hoping that showcasing ties with Nvidia will help them appeal to shareholders.

The pattern of major companies across a wide range of industries teaming up with Nvidia in AI reflects the depth of their dependence on the company's AI infrastructure. The same is true of domestic AI developed by a corporate coalition led by SoftBank and backed by the Ministry of Economy, Trade and Industry. That project will buy about 27,500 of Nvidia's AI chips, known as Rubin, mainly with public funds. The cost is expected to run into hundreds of billions of yen.

Domestic AI refers to a concept in which Japanese companies handle model design, data storage, training and operations, as well as intellectual property rights. Even so, the computing engine at the core of the AI infrastructure will rely on Nvidia.

Why countries seek Nvidia

Few countries can complete an AI infrastructure entirely on their own. Nvidia is involved in AI development in more than 20 countries, including Britain, India and the United Arab Emirates.

Huang himself has long promoted the idea of 'sovereign AI.' Countries are acutely aware of the importance of domestic AI and are trying to secure Nvidia's AI infrastructure using national budgets.

A report by the Oxford Internet Institute at the University of Oxford said only the U.S. and China have 'compute sovereignty,' meaning the ability to build advanced AI data centers with domestic companies. If reliance on U.S. company Nvidia remains high, there is also a risk that a country's AI infrastructure could be halted when the U.S. government imposes export restrictions.

At a Ministry of Economy, Trade and Industry event on Sept. 16, Huang said, 'The knowledge of Japan's industrial frontline is a national treasure.' But he has repeated similar remarks in Taiwan and South Korea, so the comment also has the feel of a sales pitch. Japan's industrial sector was swept up in the visit of AI's darling, but the real results of these collaborations and partnerships remain to be seen.

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