By Yang Jie and Megumi Fujikawa

Nvidia chips are set to power Japan's artificial-intelligence push, with the government planning to buy thousands of the company's next-generation semiconductors to build an AI ecosystem on its own soil.

Backed by massive government funding, Japan's purchase of 27,500 Nvidia AI chips will fuel a computing hub slated to launch in 2028, according to an announcement made during Nvidia Chief Executive Jensen Huang's visit to Tokyo.

The infrastructure will support efforts by state-backed consortium Noetra to develop so-called physical AI--the technology that lets machines interact in the real world. It's all part of Tokyo's overarching plan to develop homegrown alternatives to foreign platforms.

Under the agreement, Nvidia will supply AI chips and computing infrastructure for foundational models to Noetra, an alliance spearheaded by SoftBank Group, Sony Group, Honda Motor and other Japanese industry titans.