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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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Typhoon No. 12 (Noul) is strengthening over the South China Sea and is forecast to make landfall in southern China on Sunday, July 26, while swells generated by the storm bring high waves to Okinawa's Sakishima Islands.

Average life expectancy in Japan rose for both men and women last year for the first time in two years, with Japanese women retaining the world's top ranking for the 41st consecutive year.

A 37-year-old Chinese woman has been arrested and referred to prosecutors on suspicion of operating an unlicensed taxi service that transported travelers from Kansai International Airport to a hotel in Kyoto.

The Japan Aerospace Exploration Agency conducted a ground firing test of the second-stage engine for its Epsilon S small solid-fuel rocket at the Tanegashima Space Center in Kagoshima Prefecture on July 23.

Kuwana in Mie Prefecture recorded 40.6 degrees Celsius, the highest temperature anywhere in Japan this year, as a powerful high-pressure system and hot downslope winds combined to produce dangerous heat across a wide area.

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Fujitsu has developed a new artificial intelligence architecture called PHOTON that achieved up to 475 times the processing efficiency of a conventional Transformer model in research tests, raising the possibility of significantly reducing the cost of generative AI while eventually competing with services such as ChatGPT and Claude.

Generative artificial intelligence is rapidly becoming part of everyday life, with people using conversational systems for everything from relationships and parenting to health concerns and online searches.

The share of people in Japan using generative artificial intelligence has more than doubled to 58.8%, while more than one in 10 regard the technology as a friend, according to the communications ministry's 2026 white paper.

Automotive equipment maker Yazaki Corp. has opened a research and development hub in Susono, Shizuoka Prefecture, using advanced "physical AI" technology as it seeks to create factories where people and artificial intelligence work alongside one another.

The Japanese yen is currently trading at a 40-year low, and its continued depreciation has driven up the prices of various imported goods in Japan.

Japan’s major companies are showing growing caution toward hiring new graduates as artificial intelligence begins replacing routine work, while survey results suggest that older employees, nonregular workers and even managers could also face mounting pressure by 2030.

More than 40,000 engineers, business leaders and technology enthusiasts gathered at Makuhari Messe in June for AWS Summit Japan 2026, one of Japan’s largest artificial intelligence events, where new systems included an AI platform that has cut the time FC Tokyo staff spend selecting match photographs to roughly one-third of the previous level.

日本は長年にわたり、アジアで最も活発な個人トレーダーコミュニティの一つとして知られてきました。