Hitachi Invests in AI-Technology Company Preferred Networks

Hitachi, Ltd. and Preferred Networks, Inc. (PFN) announced that Hitachi made an investment in PFN, aimed at collaborative creation using "deep learning" and other forms of artificial intelligence (AI) technologies. The investment amount is approximately 500 million yen, and Hitachi received shares issued as a capital increase through a third-party allocation on November 30.

PFN is carrying out R&D on machine learning and deep learning since its foundation in March 2014, and is also developing distributed computing and networking technologies aimed at achieving "edge-heavy computing," in which data is processed through distributed coordination of the cloud, network devices, and edge devices. It has also developed and provided "Chainer," an open source deep learning framework, driving innovations, and collaborating with various leading companies to promote the use of cutting-edge technologies in the real world. PFN promotes advanced initiatives by collaborating with world leading organizations, such as Toyota Motor Corporation, Fanuc, and the National Cancer Center.

Through this capital investment, Hitachi and PFN combine the strengths that each company has cultivated, and begin studies of collaborative creation aimed at achieving further innovations. Hitachi and PFN will strive to leverage AI technologies as part of efforts to achieve "Society 5.0," a Japanese government initiative, for example by applying AI technologies in edge computing, incorporating intelligence into existing systems, and developing next-generation control systems.