Toyota and NTT Join Forces for $3.3 Billion AI-Driven Autonomous Driving R&D Initiative

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Toyota and NTT Join Forces for $3.3 Billion AI-Driven Autonomous Driving R&D Initiative

Toyota Motor (NYSE:TM) and Nippon Telegraph and Telephone Corporation (OTC:NPPXF), also known as NTT, have made a significant investment in developing advanced artificial intelligence (AI) for autonomous driving. The two Japanese giants have committed approximately 500 billion yen, equivalent to around $3.26 billion, for research and development efforts aimed at enhancing self-driving technology.

This collaboration aims to create sophisticated automotive software powered by AI that can predict and prevent accidents by taking control of the vehicle in critical situations. This initiative is part of the Japanese automakers' efforts to establish a foothold in the competitive autonomous driving market, currently dominated by Tesla (NASDAQ:TSLA) and various Chinese companies.

The partnership between Toyota and NTT is not new; they first joined forces in 2017 to work on 5G-connected vehicle technology and then reunited in 2020 for a smart city project. Their current focus on AI and self-driving technology builds upon this established relationship.

Toyota's Mirai fuel cell vehicle, which has been on the market since 2021, already features hands-free driving capabilities. However, the new R&D investment signals a more aggressive move towards next-generation autonomous driving solutions.

The two companies aim to have a functional system ready by 2028. Once developed, they plan to offer this technology to other automakers, which could potentially transform the industry's approach to vehicle safety and autonomy.

While Toyota confirmed the news reported by Nikkei, it indicated that specific details have not been officially disclosed by the company. Nonetheless, Toyota expressed its intention to continue collaborating with NTT to create a safe and secure mobility future.

As of now, NTT has not yet responded to requests for comments regarding this joint venture. At the time of the investment announcement, the exchange rate stood at 153.2300 yen per U.S. dollar.