Sovereign AI 

The most important takeaway is that NVIDIA will play a huge role in Japan’s Sovereign AI infrastructure going forward. Japan will build a national-level AI super factory powered by 27,500 Rubin GPUs through Noetra – a government-backed company also counting SoftBank, NEC, Sony, and Honda as shareholders with SoftBank in which will create a sovereign foundational model to power Japan’s Physical AI market going forward.

NVIDIA announced massive adoption of its Nemotron open models by Japanese enterprises, research institutions, and startups (including SoftBank’s SB Intuitions, Hitachi, NTT DATA, and Sakana AI). Further, the leading telcos Docomo, SoftBank, and KDDI are the ideal candidates to drive not only AI in Telco networks, but across all their massive businesses.

This brings to the second opportunity for NVIDIA "Sovereign AI" and giving Japanese entities the weights, data libraries, tools and capable infrastructure to train models tailored specifically to Japan's language, culture, and industry workflows without relying on external cloud silos.

Physical AI 

The Japanese government has finally decided to enable Physical AI in the country and has set a target of 10 million AI-equipped robots across 18 sectors by 2040.  The country has a massive 70% share of the industrial robot space, so it has an immense amount of data behind it which can be used to train Physical AI solutions. NVIDIA announced partnerships with Toyota, FANUC, Kawasaki Heavy Industries and Honda to accelerate the sector. Jensen also made some interesting comments on the state of the industry overall:

Energy

It is the foundation of his “layer-cake” AI ecosystem model and stressed that everything else depends on it. He suggested Japan tap nuclear energy to ease this bottleneck.

Humanoids 

Jensen said they will be ideal for many use cases, but not all use cases in a world built for humans. He stated his hope and belief that Japanese companies will reignite their efforts in the space.

AI Ecosystem Health 

Jensen also stated, "we are still very far from an AI bubble, and demand is extremely strong."

Analyst Take 

• Jensen is a great tech visionary, but he is an astute marketer and knows the ecosystem really well and how everything will fit and can evolve.
• USA was Jensen's Generative AI & Agentic AI launchpad and marketing its capable infrastructure for the same, and that too convincingly.
• Japan has largely sat on the sidelines of the AI boom, but it appears that it is finally waking up. The government has heavily subsidized the semiconductor space (US$65bn until 2030) but has not done much with the rest of the AI ecosystem until now.
• Japan does not have a local AI champion that can push the envelope like NVIDIA can, so it may indeed be the “missing link” the country needs.
• Jensen’s statement that "Starting from here is the beginning of Japan's AI" might be a bit of a stretch, but I think these initiatives represent excellent progress.
• For NVIDIA to lock in the upstream supply chain, Japan is indispensable when it comes to semiconductor materials and equipment firms. 
• Japan commands a near-monopoly on critical raw materials: photoresists, specialised chemicals, silicon wafers, and advanced packaging substrates — that are mandatory for advanced foundries to package High Bandwidth Memory (HBM) and chiplets. Companies include Tokyo Electron, Advantest, DISCO, Ajinomoto, Toto, Shin-Etsu, SUMCO, TOK and so forth.