American chipmaker giant Nvidia is set to foster an AI technology ecosystem in Japan, responding to the country’s strong interest in advancing in the field of artificial intelligence, reports Bloomberg.

Jensen Huang, the CEO of the Santa Clara, California-headquartered firm, announced plans to collaborate with Japanese research bodies, corporations, and startups to develop AI-driven factories. This announcement was made during Huang’s opening statement in a discussion with Japanese Economy Minister Yasutoshi Nishimura on Tuesday.

Additionally, Nvidia aims to establish an AI research lab, invest in local startups, and provide education on AI utilization, according to Huang.

Nvidia’s graphics processors, known for handling vast computing data through simultaneous calculations, are now the go-to hardware for training AI services, including the renowned ChatGPT from OpenAI.

As a result, the demand and prices for Nvidia chips have soared as various organizations and governments vie to enhance their AI capabilities. Earlier in the week, Huang met with Japan’s Prime Minister Fumio Kishida. During this meeting, as reported by local media, Huang committed to prioritizing Japan in their business strategies.

The CEO said: “We will build a network of AI factories here in Japan so that Japan can process the data of the society and create intelligence for the society and for the industry.”

On the receiving end, Tokyo is striving to reclaim its position as a technology leader. This effort involves capitalizing on its strengths in materials science and semiconductor manufacturing equipment, along with providing substantial subsidies to boost the production of advanced semiconductors within the country.

Despite these efforts, Japan has largely not tapped into the major profits associated with generative AI. However, Jensen Huang noted that Japan has the potential to establish its own AI ecosystem.

While talking about Japan’s renowned expertise in mechatronics, manufacturing, and robotics over decades, Huang told Nishimura: “Japan has all of the technical expertise, the industrial capability to create your own artificial intelligence right here in Japan. There is no reason to export Japan’s data. There is no reason to export Japan’s artificial intelligence.”

Meanwhile, the Japanese Economy Minister Yasutoshi Nishimura said: “For Japan to develop its own generative AI, we need Nvidia’s GPUs. We cannot do it without collaborating. I’d like to see Japan lead the world in innovation through a deepened partnership with Nvidia.”