# Japan funds domestic foundation model and AI compute > Source: > Published: 2026-06-30 07:11:00+00:00 Editorial analysis: For AI practitioners, Japan's coordinated funding for models and compute increases the likelihood of locally governed foundation models and GPU capacity, which could alter cloud vendor choices and data-sharing arrangements for robotics and manufacturing workloads. JIJI reports the industry's ministry announced **JPY387.3 billion** in funding for a five-year project to develop a domestic multimodal foundation model for "physical AI" that controls robots, led by **the METI-backed consortium** and backed by firms including **SoftBank**; engineers from **SoftBank** and **Preferred Networks** and support from **AIST** are expected to participate (JIJI). OECD.ai documents a related METI programme that approved subsidies totalling up to **JPY72.5 billion** to five companies to build GPU cloud services under the Economic Security Promotion Act, naming recipients and amounts for each project (OECD.ai). JIJI reports the project aims for an initial model release as early as this fiscal year, with annual improvements thereafter (JIJI).