‘They’re sweating’: Why Japanese giants are pouring money into Silicon Valley startups

Japanese corporate giants are increasing venture capital investments in Silicon Valley startups to address falling behind in the AI revolution. Pegasus Tech Ventures is quadrupling its corporate venture fund for Japanet (a major Japanese mail-order network) to $200 million, while managing an expanded $100 million fund for auto supplier Aisin. These moves reflect anxiety among legacy Japanese companies about slow digital transformation and AI adoption compared to the U.S. and Europe, with language barriers and R&D constraints cited as key reasons for partnering with startups.