Japan earmarks 1 trillion yen for AI robot rollout across 18 sectors by 2040

The Japanese government has tasked a consortium called Noetra—comprising SoftBank, Sony, Honda and other firms—with up to ¥1 trillion of public funds to develop a multimodal "physical AI" model that will enable the deployment of 10 million AI‑enabled robots across 18 industries, including dining, food manufacturing and healthcare, by 2040. The first tranche, about ¥2.3 billion (≈ $23 billion), has been allocated for fiscal years 2026‑2030 and will be financed through GX green bonds, with annual funding subject to performance reviews.

The robot initiative is part of a broader "Japan Growth Strategy" that outlines a ¥370 trillion investment roadmap through FY 2040 covering AI, semiconductors, drug discovery, space and other strategic sectors. The plan aims to bolster economic security, target roughly 2 % GDP growth, and lower the debt‑to‑GDP ratio. Financing will involve issuance of linked‑revenue bonds, though critics warn of fiscal discipline risks and possible inflationary pressure if spending expands without sufficient private‑sector co‑investment.