Toyota Motor and NTT Invest in AI for Self-Driving Cars

(Reuters) – Toyota Motor and Japan's Nippon Telegraph and Telephone (NTT) will invest 500 billion yen ($3.26 billion) in research and development to create artificial intelligence software to improve self-driving, according to a Nikkei report on Tuesday.

The carmaker and the Tokyo-headquartered telecommunications major plan to develop automotive software that will use AI to anticipate accidents and take control of the vehicle, the report stated.

The firms aim to have a working system ready by 2028 and intend to provide it to other automakers.

This collaboration comes at a time when Japanese automakers are keen to enter the rapidly growing advanced autonomous driving market, currently led by Tesla and various Chinese firms.

Toyota's Mirai fuel-cell vehicle has featured a hands-free driving function since 2021.

Both firms previously partnered in 2017 to develop technology for 5G-connected cars and had a capital tie-up as part of a smart city project in 2020.

Toyota Motor (NYSE:TM) and NTT did not immediately respond to Reuters' requests for comment.

($1 = 153.2300 yen)