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How Japan’s largest AI unicorn is shaping the future of deep learning

Mar 26, 2025 (CNBC International) - Widely considered Japan's leading artificial intelligence startup, Preferred Networks is on a mission to tackle "real-world" challenges through deep learning.

Founded in 2014, the company has embarked on several joint projects, ranging from autonomous driving to cutting-edge semiconductors.

By attracting major investors like Toyota, Preferred Networks has grown into Japan's largest unicorn, a private company valued at over $1 billion.

"We are trying to create a lot of new value in the world by focusing on computers and computer science, which we love," CEO Toru Nishikawa told CNBC's Christine Tan in the latest episode of Managing Asia.

"Our vision is to make the world a better place by making the latest technology available in the shortest possible time," Nishikawa added.

One of Preferred Networks' most ambitious projects to date is the development of AI-powered autonomous trucks, which aim to address Japan's declining and aging workforce in the trucking industry.

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Osaka’s Minami district, now entering another period of major change with the planned opening of the Naniwasuji Line, the redevelopment of Midosuji and improvements around Nankai Namba Station, has transformed from an area once described as "scary" and "dirty" into one of Japan’s leading tourist destinations.

A 10-ton hoko float was pulled through central Kyoto on July 12 in a trial run ahead of the Yamahoko Junko procession during the Gion Festival's early parade.

A growing number of young doctors in Japan are moving directly into cosmetic medicine after obtaining a medical license and completing their initial clinical training, raising concern that the trend may be worsening staff shortages in insurance-covered medical care.

Transport disruption from Typhoon No. 9 (Bavi) continued on July 12, with airlines warning that some flights serving Okinawa’s outlying islands could still face delays, cancellations or conditional operations even after the storm moved away from the prefecture.

JAXA successfully landed a small experimental vehicle for a reusable rocket on July 11, marking a step toward technology that could increase the frequency of space launches while helping reduce costs.

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Demand for next-generation power semiconductors is expected to grow as artificial intelligence servers place heavier loads on power infrastructure, raising interest in technologies once viewed mainly as a component for electric vehicles.

Japan's anime industry, one of the country's leading cultural exports, is beginning to confront the arrival of artificial intelligence in production as studios grapple with labor shortages, rising output and deep concerns over copyright and the future of animators' jobs.

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Mitsubishi Motors and Highlanders, a startup founded from the University of Tokyo, announced on July 10 that they will jointly develop humanoid "physical AI" robots and move toward mass production as Japan faces growing labor shortages.

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A council of 39 companies, including startups developing medical devices that use artificial intelligence, called for greater support to expand Japan's AI medical device industry, including subsidies for hospitals and financial assistance for overseas exports.

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