Kawasaki Heavy Industries partnered with Nvidia and Microsoft to develop AI-enhanced industrial robots. The companies established a new AI hub in San Jose, California, to create physical AI machines that perceive and react to real-world environments.

The collaboration integrates Nvidia’s AI platforms with Microsoft’s cloud technologies. Nvidia CEO Jensen Huang stated the project enables machines to understand the physical world. Kawasaki’s CEO emphasized the technology aims to support human judgment rather than replace workers.

Initial applications will focus on the healthcare industry. The project also involves collaboration with U.S. chipmaker Analog Devices and Japan’s Fujitsu.

Kawasaki Heavy Industries' shares climbed 4.5% on Friday following the announcement.