• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechRobotics

Here’s why Toyota is spending $1 billion on AI in Silicon Valley

By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
November 6, 2015, 9:38 AM ET

Toyota Motor Co (TM) is getting serious with its work on autonomous cars and robotics.

The world’s largest automaker said Friday it will invest $1 billion over the next five years in a new research center for Artificial Intelligence to be based in Silicon Valley, led by the man who was until recently designing prototype Terminators for the Defense Department (well, sort of).

The ‘Toyota Research Institute’, as it will be known, will have “an initial focus on artificial intelligence and robotics,” according to the company’s statement. It will be located near to the Palo Alto campus of Stanford University, with which the Japanese company already partners in researching AI.

Heading the institute will be Dr. Gill Pratt, a prominent AI expert who had previously worked at the U.S. Defense Advance Research Projects Agency. Tech blogs have speculated that Pratt was likely to end up at one of the established Silicon Valley giants now researching driverless vehicle technology, such as Google Inc. (GOOG) and, reportedly, Apple Inc. (AAPL).

Pratt joined Toyota earlier this year. He said Friday that Toyota has three goals:

  1. improve safety by continuously decreasing the likelihood that a car will be involved in an accident;
  2. make driving accessible to everyone, regardless of ability;
  3. apply Toyota technology used for outdoor mobility to indoor environments, particularly for the support of seniors.

The third of those priorities sheds an important light on Toyota’s priorities. The company has identified ‘support robots’ for domestic situations as an especially pressing priority, given Japan’s rapidly ageing population. In a recent interview with IEEE Spectrum, Pratt observed that while the share of over-65s in the population is already 25% in Japan, and will rise to 40% by 2030. In the U.S., for comparison, that share is expected to rise from 15% to 20% in the same timeframe.

Pratt said Friday that one of the personal experiences that had spurred him to take the Toyota position was having to take away his father’s car keys when Pratt Sr. reached 83 – “a terribly disappointing day for him and for us.”

About the Author
By Geoffrey Smith
See full bioRight Arrow Button Icon

Latest in Tech

AIchief executive officer (CEO)
Microsoft AI boss Suleyman opens up about his peers and calls Elon Musk a ‘bulldozer’ with ‘superhuman capabilities to bend reality to his will’
By Jason MaDecember 13, 2025
3 hours ago
InvestingStock
There have been head fakes before, but this time may be different as the latest stock rotation out of AI is just getting started, analysts say
By Jason MaDecember 13, 2025
8 hours ago
Politicsdavid sacks
Can there be competency without conflict in Washington?
By Alyson ShontellDecember 13, 2025
9 hours ago
InnovationRobots
Even in Silicon Valley, skepticism looms over robots, while ‘China has certainly a lot more momentum on humanoids’
By Matt O'Brien and The Associated PressDecember 13, 2025
11 hours ago
Sarandos
Arts & EntertainmentM&A
It’s a sequel, it’s a remake, it’s a reboot: Lawyers grow wistful for old corporate rumbles as Paramount, Netflix fight for Warner
By Nick LichtenbergDecember 13, 2025
15 hours ago
Oracle chairman of the board and chief technology officer Larry Ellison delivers a keynote address during the 2019 Oracle OpenWorld on September 16, 2019 in San Francisco, California.
AIOracle
Oracle’s collapsing stock shows the AI boom is running into two hard limits: physics and debt markets
By Eva RoytburgDecember 13, 2025
16 hours ago

Most Popular

placeholder alt text
Success
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeDecember 12, 2025
1 day ago
placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
2 days ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
1 day ago
placeholder alt text
Economy
The Fed just ‘Trump-proofed’ itself with a unanimous move to preempt a potential leadership shake-up
By Jason MaDecember 12, 2025
1 day ago
placeholder alt text
Economy
For the first time since Trump’s tariff rollout, import tax revenue has fallen, threatening his lofty plans to slash the $38 trillion national debt
By Sasha RogelbergDecember 12, 2025
1 day ago
placeholder alt text
Success
Apple CEO Tim Cook out-earns the average American’s salary in just 7 hours—to put that into context, he could buy a new $439,000 home in just 2 days
By Emma BurleighDecember 12, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.