--- title: "The physical AI concept accelerates its implementation! NVIDIA and Toyota's ten-year collaboration upgrades: full-stack AI technology permeates Toyota's \"Woven City\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/292836244.md" description: "NVIDIA and Toyota announced an expansion of their ten-year strategic partnership, extending the application of physical AI from autonomous driving to robotics, smart factories, and smart cities. NVIDIA will provide full-stack AI technology support for Toyota's \"Woven City,\" covering scenarios such as traffic management. This upgrade marks the largest expansion between the two parties since 2017, with Toyota adopting NVIDIA's Drive AGX platform and DriveOS system to develop L2++ level driving assistance features in next-generation vehicles" datetime: "2026-07-16T01:46:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292836244.md) - [en](https://longbridge.com/en/news/292836244.md) - [zh-HK](https://longbridge.com/zh-HK/news/292836244.md) --- # The physical AI concept accelerates its implementation! NVIDIA and Toyota's ten-year collaboration upgrades: full-stack AI technology permeates Toyota's "Woven City" According to Zhitong Finance APP, on July 14, NVIDIA (NVDA.US) and Toyota Motor Corporation (TM.US) jointly announced the expansion of their decade-long strategic partnership, extending the application of Physical AI from the field of autonomous driving to a broader range of physical scenarios, including robotics, smart factories, and smart cities. NVIDIA CEO Jensen Huang personally visited Tokyo this week to promote this collaboration, coinciding with a critical period for Japanese Prime Minister Sanae Takaichi's push for domestic AI industry development. This upgrade in cooperation marks the most significant expansion since Toyota chose NVIDIA's DRIVE PX platform to test its autonomous driving system in 2017. Last year, both parties announced that Toyota would adopt the NVIDIA DRIVE AGX platform and develop the next generation of vehicles using the safety-certified NVIDIA DriveOS operating system. ## From L2++ to "Woven City": Four Key Scenarios for Physical AI Implementation The core implementation scenario of this collaboration is Toyota's experimental smart city, "Woven City," being built in Shizuoka Prefecture. NVIDIA will provide AI technology for traffic management. "Woven City" is expected to be completed in the fall of 2025 and will accommodate approximately 2,000 residents. This city is designed as a real-world laboratory for testing cutting-edge technologies such as autonomous driving, intelligent transportation, and robotics in a practical environment. NVIDIA's involvement means that this smart city will receive full-stack technical support, from chips to AI software. **A Decade of Cooperation: From Drive PX to L2++ Mass Production** NVIDIA's collaboration with Toyota began in 2017 when Toyota selected the NVIDIA Drive PX platform to test its early autonomous driving systems. In 2025, the two parties further deepened their cooperation, with Toyota committing to use the NVIDIA Drive AGX Orin platform in its commercial vehicle fleet. Following this upgrade, Toyota is adopting the NVIDIA DRIVE AGX platform equipped with the safety-certified NVIDIA DriveOS operating system to develop the next generation of vehicles with L2++ level driving assistance features. The L2++ level system can more accurately understand road environments and make driving decisions while adhering to Toyota's strict safety standards. **Four Key Implementation Scenarios** Automobiles: L2++ Driving Assistance. Toyota is developing the next generation of vehicles using the NVIDIA DRIVE AGX platform, equipped with the safety-certified NVIDIA DriveOS operating system to achieve advanced L2++ driving assistance features. The new vehicles can more accurately understand road environments and make driving decisions while complying with Toyota's strict safety standards. Software Development: AI-Accelerated Code Generation. The automotive industry is rapidly transitioning to software-defined vehicles, and Toyota has developed a Code Assistant AI model that complies with MISRA standards, trained and fine-tuned using NVIDIA Megatron-LM and referencing various datasets such as NVIDIA Nemotron. This custom AI model helps engineers generate, review, and verify safety-critical code more efficiently, shortening development cycles while meeting stringent industry regulations Factory: Omniverse Digital Twin. Toyota is utilizing the NVIDIA Omniverse library and NVIDIA Isaac Sim open framework for manufacturing sites to simulate production processes, robotic movements, and complete digital twin environments. Testing and optimizing production plans in a virtual environment helps reduce downtime, improve efficiency, and lower costs. Smart City: Woven City Visual Language Model. Toyota's subsidiary Woven by Toyota has developed a multimodal visual language model called Woven City AI Vision Engine using NVIDIA H100 Tensor Core GPUs and Megatron-Core. This model is aimed at urban traffic intelligence, capable of analyzing real-world environments, predicting developments, and assisting traffic and infrastructure systems in taking timely measures. Woven City is an experimental prototype community built on the site of a former factory in Shizuoka Prefecture, serving as a real-world laboratory to test cutting-edge technologies. ## Jensen Huang's Visit to Japan: A Dual Bet on Sovereign AI and Physical AI During his visit to Japan, Jensen Huang attended the 30th anniversary event of NVIDIA's collaboration with Sega held on July 15 in Tokyo. In between developer events in Tokyo, Huang clarified rumors regarding the delay of the Vera Rubin project, stating to reporters that NVIDIA's next-generation Vera Rubin AI accelerator hardware is moving towards "massive" production scale. Huang also emphasized the importance of sovereign AI in Tokyo: "National-level intelligent capabilities must be cultivated, strengthened, and developed domestically, and must be established within the country's borders." Japan is facing pressure from a declining labor population, and the factory automation and robotics industries are accelerating the introduction of artificial intelligence to enhance efficiency. He also refuted the AI bubble theory, stating that the demand for AI infrastructure remains "exceptionally strong." Masayoshi Son also voiced support for AI investment during the same period. Earlier this week, SoftBank founder Masayoshi Son stated at the SoftBank World Conference that the doubts about over-investment in AI are "foolish." SoftBank has previously finalized a $30 billion investment agreement with OpenAI, to be delivered in three phases. Son predicts that by 2040, AI data centers will require 3 terawatts of electricity, equivalent to 1.8 times the current global total electricity consumption. ## Japan's AI Ecosystem Fully Expands: Nemotron Model and Jetson Thor NVIDIA is simultaneously expanding its enterprise AI collaboration ecosystem in Japan. Japanese companies utilizing NVIDIA's Nemotron large language model include ENEOS, NTT DATA, and Hitachi. Nemotron is an open model series released by NVIDIA in February 2026, covering various scales from 9 billion to 320 billion parameters, with a permissive license allowing commercial use. NVIDIA has also launched the new Jetson Thor computer, aimed at advancing mainstream robotics technology and edge AI development. This chip is based on a new generation of GPU architecture, offering approximately 8 times the computing power of the previous generation Jetson Orin, and can support real-time inference scenarios for humanoid robots, industrial automation, and edge AI servers According to Futures Express, Toyota plans to integrate the Jetson Thor platform into its next-generation unmanned delivery vehicles and warehouse robots by 2027. In the broader landscape of AI in Japanese manufacturing, leading Japanese manufacturers such as FANUC, Fujitsu, Kawasaki Heavy Industries, Kubota, Mitsubishi Electric, NEC, and SoftBank have joined NVIDIA's "Cosmos" physical AI ecosystem. Omron, Sony, and Woven by Toyota will use NVIDIA's Isaac robotics platform and Jetson computers to develop the next generation of robots. ## Market and Strategic Significance: A Key Step for Physical AI from Concept to Implementation This upgrade in collaboration marks a significant step for physical AI moving from concept to large-scale industrial implementation. Deepu Talla, NVIDIA's Vice President of Robotics and Edge AI, stated, "We are expanding our collaboration to advance the application of physical artificial intelligence in areas such as automotive, robotics, and smart cities." For NVIDIA, this collaboration is a crucial step in its transformation from an AI chip supplier to a provider of a full-stack physical AI platform. Japan has numerous world-class companies in the automotive, industrial robotics, and factory automation sectors, and NVIDIA believes that such a manufacturing foundation is essential for applying AI in actual production environments. This collaboration represents a key step in extending its AI landscape from data centers to the physical world—achieving collaborative deployment of the three major platforms: Omniverse (digital twin), Isaac (robot simulation), and DRIVE (autonomous driving) on the same customer. For Toyota, this serves as a technological cornerstone for its transformation from an "automaker" to a "mobility company"—from L2++ assisted driving to digital twin factories, and then to smart city AI, NVIDIA's full-stack technology is permeating every aspect of Toyota's business. For Toyota, this is an important technological support for its transformation from a traditional automaker to a provider of mobility and smart city services. Both parties hope to integrate AI technologies in the automotive, infrastructure, and industrial operations sectors to jointly build a new mobility system. It is noteworthy that after Jensen Huang's visits to South Korea and Taiwan, there was controversy in Japan regarding "transiting through Japan." By announcing the expansion of cooperation with leading Japanese companies such as Toyota and FANUC, NVIDIA has clarified its plan to accelerate its entry into the Japanese manufacturing and robotics market. As the global AI competition shifts focus from large language models to the physical world, this upgrade in collaboration between NVIDIA and Toyota provides a reference model for "how physical AI can be implemented"—from chips to operating systems, from digital twins to real-world laboratories, a complete path from virtual to reality, from code to steel is being paved ### Related Stocks - [7203.JP](https://longbridge.com/en/quote/7203.JP.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [TM.US](https://longbridge.com/en/quote/TM.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [TMH.US](https://longbridge.com/en/quote/TMH.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [9984.JP](https://longbridge.com/en/quote/9984.JP.md) - [SFTBY.US](https://longbridge.com/en/quote/SFTBY.US.md) - [5020.JP](https://longbridge.com/en/quote/5020.JP.md) - [9613.JP](https://longbridge.com/en/quote/9613.JP.md) - [6501.JP](https://longbridge.com/en/quote/6501.JP.md) - [HTHIY.US](https://longbridge.com/en/quote/HTHIY.US.md) - [6954.JP](https://longbridge.com/en/quote/6954.JP.md) - [FANUY.US](https://longbridge.com/en/quote/FANUY.US.md) - [6702.JP](https://longbridge.com/en/quote/6702.JP.md) - [FJTSY.US](https://longbridge.com/en/quote/FJTSY.US.md) - [7012.JP](https://longbridge.com/en/quote/7012.JP.md) - [KWHIY.US](https://longbridge.com/en/quote/KWHIY.US.md) - [6326.JP](https://longbridge.com/en/quote/6326.JP.md) - [KUBTY.US](https://longbridge.com/en/quote/KUBTY.US.md) - [6503.JP](https://longbridge.com/en/quote/6503.JP.md) - [MIELY.US](https://longbridge.com/en/quote/MIELY.US.md) - [6701.JP](https://longbridge.com/en/quote/6701.JP.md) - [6645.JP](https://longbridge.com/en/quote/6645.JP.md) - [OMRNY.US](https://longbridge.com/en/quote/OMRNY.US.md) - [6758.JP](https://longbridge.com/en/quote/6758.JP.md) - [SONY.US](https://longbridge.com/en/quote/SONY.US.md) - [6460.JP](https://longbridge.com/en/quote/6460.JP.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [TOYOF.US](https://longbridge.com/en/quote/TOYOF.US.md) ## Related News & Research - [Sharon AI Announces US$1.32 Billion Five-Year Cloud Computing Service Agreement | SHAZ Stock News](https://longbridge.com/en/news/292903735.md) - [QumulusAI Joins the NVIDIA Partner Network as an NVIDIA Cloud Partner | QMLS Stock News](https://longbridge.com/en/news/293030533.md) - [GoodVision AI-NVIDIA Collaboration Advances Calisa SPAC Deal](https://longbridge.com/en/news/292521838.md) - [RLWRLD debuts dexterity robot AI to address labor shortages](https://longbridge.com/en/news/292555169.md) - [Toyota Tundra V6 recall expands to 250,000 amid engine failure debate](https://longbridge.com/en/news/292888263.md)