Japan targets $65bn public-private physical AI investment by 2040

Japan today sets a $65 billion public-private investment target for so-called physical AI by 2040, in a new long-term industrial push, according to Nikkei Asia. The push aims to accelerate robotics, automation, and AI-embedded hardware to counter labor shortages from an aging population and to bolster industrial competitiveness across autos, electronics, and healthcare equipment. The target signals Tokyo’s drive to secure critical supply chains and keep pace with escalating US and Chinese tech funding in AI-linked infrastructure and manufacturing.

Nikkei Asia reports the program will blend government funding with corporate capital across manufacturing equipment, smart infrastructure, industrial robots, and next-generation components, with detailed allocations and timelines still pending. Watch for a formal policy roadmap, initial budget tranches, and early corporate partners to be named in the coming weeks. [Developing. This article will be updated.]