"Second, even failed startups often contribute crucial innovation to a country’s ecosystem. Fairchild Semiconductor wasn’t successful, but it pushed the envelope of semiconductor technology forward, and some of its alumni went on to found Intel. General Magic tried and failed to invent the smartphone in the 1990s, but its alumni went on to help create the iPhone."
Failure is an important part of the path to success creating both technical expertise and adjacent technology & capabilities that enable future successes. This is true both when the future success is internal and external to a company.
I'm going to stand firm on my position that non-anglophone countries are only notionally pro-AI because the penny hasn't dropped yet. I find it very hard to believe that the same cultural landscape that has delivered the current Japanese software culture will react to the real effects of AI in any way but abject horror.
I bring one item of evidence. The absolutely NUCLEAR reaction of the Japanese localization community of Mozilla to the introduction of AI translation.
"I prohibit to use all my translation as learning data for SUMO bot and AIs.
I request to remove all my translation from learned data of SUMO AIs."
Public opinion polling shows there is more awareness of AI in Japan and less concern for it causing problems and only 28% of people are more concerned than excited about AI vs. 50% of Americans who feel that way.
Every country will adopt AI at its own pace, even Japan. I think that’s why Noah is encouraging AI companies to invest in Japan directly. The Japanese employees will eventually drive the adoption of AI.
One thing I wonder about is if Japan can ever catch up (or even compete) with China as an electro-state with things like batteries, EVs, electric motors, etc.
Companies like Toyota and Honda seem way behind on EV tech, but I have a hard time counting them out either. They have a long history of technological prowess and strong brands with customer loyalty. That said, they do seem to still be stuck in their hydrogen-car backwater.
Does anyone know if Japan is even trying to recapture leadership here or are they content to let others own this technology indefinitely?
Defense is another area where FDI is needed, and may be growing. Anduril just opened a Japan office in Tokyo and wants to supply the increased defense buildup they need to address Chinese and NK threats. RocketLabs (a growing NZ/US startup) is working with JAXA on satellite launches.
Maybe it would be good for a defense company to start building warships in Japan, using the local knowledge and workforce for export to the US Navy, considering the problems we have building new ships like Constellation program.
To emphasize one of your important points:
"Second, even failed startups often contribute crucial innovation to a country’s ecosystem. Fairchild Semiconductor wasn’t successful, but it pushed the envelope of semiconductor technology forward, and some of its alumni went on to found Intel. General Magic tried and failed to invent the smartphone in the 1990s, but its alumni went on to help create the iPhone."
Failure is an important part of the path to success creating both technical expertise and adjacent technology & capabilities that enable future successes. This is true both when the future success is internal and external to a company.
I'm going to stand firm on my position that non-anglophone countries are only notionally pro-AI because the penny hasn't dropped yet. I find it very hard to believe that the same cultural landscape that has delivered the current Japanese software culture will react to the real effects of AI in any way but abject horror.
I bring one item of evidence. The absolutely NUCLEAR reaction of the Japanese localization community of Mozilla to the introduction of AI translation.
"I prohibit to use all my translation as learning data for SUMO bot and AIs.
I request to remove all my translation from learned data of SUMO AIs."
https://support.mozilla.org/en-US/forums/contributors/717446
Public opinion polling shows there is more awareness of AI in Japan and less concern for it causing problems and only 28% of people are more concerned than excited about AI vs. 50% of Americans who feel that way.
https://www.japantimes.co.jp/business/2025/10/20/tech/japan-ai-survey/
Every country will adopt AI at its own pace, even Japan. I think that’s why Noah is encouraging AI companies to invest in Japan directly. The Japanese employees will eventually drive the adoption of AI.
Great article. I learned a lot from it. Thx.
One thing I wonder about is if Japan can ever catch up (or even compete) with China as an electro-state with things like batteries, EVs, electric motors, etc.
Companies like Toyota and Honda seem way behind on EV tech, but I have a hard time counting them out either. They have a long history of technological prowess and strong brands with customer loyalty. That said, they do seem to still be stuck in their hydrogen-car backwater.
Does anyone know if Japan is even trying to recapture leadership here or are they content to let others own this technology indefinitely?
Great article. Suggest defining FDI upfront for the less wonky readers.
Defense is another area where FDI is needed, and may be growing. Anduril just opened a Japan office in Tokyo and wants to supply the increased defense buildup they need to address Chinese and NK threats. RocketLabs (a growing NZ/US startup) is working with JAXA on satellite launches.
Maybe it would be good for a defense company to start building warships in Japan, using the local knowledge and workforce for export to the US Navy, considering the problems we have building new ships like Constellation program.
https://www.wsj.com/articles/navy-scraps-plans-for-troubled-warship-design-34f71b36