Kobe Steel recently announced its investment in Noetra Inc., a Japanese startup specializing in the development of domestic multimodal foundation models. Through this investment, Kobe Steel has become a part of Noetra’s research and development activities focused on creating a Japan-developed multimodal foundation model. This cutting-edge model is designed to process various types of data such as images, video, audio, and sensor information. Both companies view this technology as crucial for the advancement of “physical AI,” enabling robots and industrial equipment to autonomously make decisions and function effectively in real-world scenarios.
The collaboration between Kobe Steel and Noetra is part of a national initiative supported by Japan’s Ministry of Economy, Trade and Industry and NEDO, the government-backed New Energy and Industrial Technology Development Organization. Japan is prioritizing the development of domestic technology in critical sectors like artificial intelligence to ensure data security and economic independence. Against the backdrop of fierce global competition in AI, Noetra is dedicated to advancing its domestic multimodal foundation model to stay competitive in the field.
Kobe Steel’s investment is aligned with its commitment to enhancing data security through systems developed and managed in Japan. The company believes that physical AI and the domestic multimodal model will address various challenges within its operations, including equipment management and manufacturing processes. As part of its medium-term management plan through 2026, known as KOBELCO-X, Kobe Steel is striving to transform into a more innovative and attractive company. The partnership with Noetra is expected to bolster existing businesses, drive innovation, and enhance the group’s overall competitiveness.
With its diversified operations in materials, machinery, and electric power, Kobe Steel, also known as KOBELCO, stands as a major industrial group in Japan. The company’s investment goals align with its strategy to achieve a return on invested capital target of around 6%, with ambitions of reaching 8% under favorable conditions. Over the fiscal years 2024 to 2026, Kobe Steel plans to invest approximately 830 billion yen ($5.09 billion) in various initiatives, including measures for carbon neutrality, capacity strengthening, growth projects, human capital development, and efficiency enhancements such as digital transformation.
NEDO, which has historically been instrumental in supporting industrial technology advancements in areas like energy, manufacturing, and digital technologies, plays a key role in facilitating such collaborations. Amid rapid technological advancements and increasing competition, partnerships like the one between Kobe Steel and Noetra are essential for driving innovation and securing Japan’s position in the global AI landscape.
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