"Japanese AI Unicorn: Deep Learning for Real-World Solutions"

In the bustling landscape of artificial intelligence, one Japanese unicorn stands out with its ambitious plans to tackle real-world problems using deep learning. Preferred Networks, a company backed by automotive giant toyota, is venturing into industries as varied as trucking, healthcare, and robotics. But can this little-known name outside of Japan truly make a global impact?

Preferred Networks' approach to solving real-world problems is markedly different from other AI solutions in the digital space. CEO Toru Nishikawa emphasizes that dealing with real-world changes requires a different approach. Unlike digital solutions, which often involve straightforward data processing, real-world problems are complex and dynamic. This is where Preferred Networks' expertise in deep learning comes into play. The company uses a lot of data to improve accuracy, making its solutions not only technologically advanced but also practical and commercially viable.

One of the key areas where Preferred Networks is making strides is autonomous driving. The company is collaborating with Toyota and Mitsui & Co. to develop technology that addresses challenges in the trucking industry, such as long working hours and a declining pool of drivers. This joint venture, which includes investing in a company called T2, showcases Preferred Networks' strategic approach to tackling real-world problems. By leveraging Mitsui's expertise and resources, Preferred Networks can reduce the financial burden and accelerate the development process.



However, the road to global dominance is fraught with challenges. The AI industry is highly competitive, and Preferred Networks faces stiff competition from tech giants and startups alike. CEO Toru Nishikawa acknowledges that tackling the problem of regular cars would be extremely difficult due to the intense competition in the autonomous driving field. Additionally, the time and resources required to commercialize their technologies pose a significant risk. It could take as many as five years for their technologies to start making money, a long timeline that requires sustained financial support.

To mitigate these risks, Preferred Networks is focusing on strategic partnerships and joint ventures. The company is also eyeing foreign investors and receiving inquiries in fields such as entertainment, semiconductors, and computers. This indicates the company's efforts to diversify its funding sources and tap into the global market, which is much bigger than the Japanese market. By attracting foreign investors, Preferred Networks can secure the necessary funds to support its ambitious plans and mitigate the financial risks associated with long-term research and development.

Furthermore, Preferred Networks is actively working on creating more advanced processors to gain a competitive advantage. Recognizing that Nvidia's generative AI strategy has fared well but has a graphics processing unit design that is not yet "optimal," Preferred Networks is in the midst of developing more advanced processors. This strategic move aims to differentiate Preferred Networks from competitors and position the company as a leader in the AI industry.

In conclusion, Preferred Networks' ambitious plans to use deep learning to fix real-world problems are both inspiring and challenging. The company's strategic approach, focus on practical solutions, and efforts to mitigate risks position it well for global success. However, the competitive nature of the AI industry and the long timeline for commercialization pose significant challenges. As Preferred Networks continues to innovate and expand its partnerships, it will be interesting to see how the company navigates these challenges and achieves its global ambitions.