Toyota Motor and Nippon Telegraph and Telephone have agreed on working together to develop smart cities and will invest 200 billion yen ($1.eight billion) in each other to rock the tie, the two firms said Tuesday.
The two corporations will develop a data platform that will gather and analyze data from homes, autos, and public institutions, which might be utilized to create new companies specializing in transportation, health, and energy utilization.
Under the settlement, Toyota will take a 2.07% holding in Japan’s most significant telecoms firm, while NTT will receive a 0.9% stake in the auto manufacturer.
The platform will be introduced at the prototype, zero-emissions, hydrogen-powered metropolis near Mt. Fuji in Japan, which Toyota is developing to incorporate smart homes, robotics in addition to autonomous driving and AI technologies.
After decades spent specializing in making and selling automobiles, Toyota is increasingly shifting to partners in the technology industry to help develop expensive new automobile technologies as it attempts to transform itself into a mobility services firm.
A growing number of global tech titans along with China’s Tencent Holdings, Alphabet, Samsung Electronics, and Panasonic are developing hi-tech, connected cities. However, many remain in the early planning phases.
The joint venture between Toyota and NTT will build on an existing partnership under which the businesses are jointly developing technology for connected vehicles.