Automotive manufacturer Toyota invested approximately ¥10.5bn ($94.8m) in Japan-based deep learning technology developer Preferred Networks (PFN) on Friday, in a deal that made it Preferred’s largest external investor.
Founded in 2014 as a spinout of natural language processing software provider Preferred Infrastructure, PFN is working on deep learning technology for the internet of things, helping connected devices use data more efficiently.
PFN focuses on the transport, manufacturing and healthcare sectors, and it is the former where Toyota’s interest lies.
The companies have been partners since late 2014 when they signed a joint research and development for object recognition and vehicle information analysis technology. They plans to accelerate their joint R&D activities for mobility technology following the latest funding.
Toyota provided $8.3m in funding for the company in late 2015, the year after telecommunications firm NTT had paid $1.8m for a sub-10% stake. PFN plans to use Toyota’s latest investment to increase hiring and strengthen its technology
The deal was announced on the same day as Toyota revealed it has agreed to acquire a 5% stake in fellow Japan-based carmaker Mazda as part of a strategic partnership that will involve them collaborating on connected, electric vehicle and safety technology.