Key facts
- Nvidia CEO Jensen Huang is visiting Japan to promote semiconductor supplies for Noetra, a government-backed AI developer.
- Noetra was formed by SoftBank, NEC, Honda, and Sony Group, with investment from 44 domestic companies and government support.
- Nvidia's revenue from sovereign AI initiatives more than tripled to over $30 billion in the fiscal year ending January 2026.
- Countries are increasingly focusing on 'sovereign AI' for economic security, developing AI within their own borders.
- Nvidia is involved in AI development plans in over 20 countries globally.
Nvidia CEO Jensen Huang is visiting Japan, with a focus on a potential partnership with Noetra, a government-backed artificial intelligence developer formed by SoftBank, NEC, Honda, and Sony Group. The visit aims to promote Nvidia's semiconductor supplies and support for Noetra's AI development.
Noetra has attracted investment from 44 domestic companies and will receive up to 1 trillion yen in government support. Huang and Noetra's president are expected to attend an event hosted by the Ministry of Economy, Trade and Industry on July 16th, where Noetra is anticipated to utilize Nvidia's latest AI chips for its development platform.
The global push for 'sovereign AI'—developing and operating AI within national borders—is driven by AI's strategic importance for economic security. Concerns over the concentration of advanced AI development in the U.S., highlighted by restrictions on foreign use of Anthropic's AI model, are prompting countries like France (backing Mistral AI) and China (building its own supply chain) to bolster domestic capabilities.
For Nvidia, these sovereign AI initiatives represent a significant new revenue stream. The company's revenue related to sovereign AI more than tripled to over $30 billion in the fiscal year ending January 2026. This diversification also helps Nvidia mitigate risk, as over 50% of its data center revenue currently comes from five major companies, primarily U.S. hyperscalers.
However, competition is intensifying. Canadian AI firm Cohere plans to merge with a German peer to support sovereign AI, and U.S. chip start-up Cerebras Systems is expanding its data centers in Europe. Nvidia also faces regulatory scrutiny, with reports of potential anti-competitive conduct investigations by French regulators.