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Toyota to Invest $1 Billion for Artificial Intelligence R&D

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Toyota Motor CorporationTM announced that it is starting a new research and development (R&D) enterprise called Toyota Research Institute Inc. ("TRI"), with an initial investment of $1 billion, over the next five years. The company will be operational from Jan 2016 with around 200 employees.

TRI will be engaged in advanced research and product planning, with an initial focus on artificial intelligence and robotics. It will have its headquarters in Silicon Valley, with a second facility near the Massachusetts Institute of Technology ("MIT") in Cambridge, MA. It is worth noting that Toyota is collaborating with MIT as well as Stanford University to set up joint fundamental artificial intelligence research centers at each of the universities. This will cost Toyota another $50 million, to be spread over the next five years.

Toyota has confidence in the potential held by artificial intelligence technology. TRI will focus on reducing car accidents, making driving accessible to everyone and using Toyota's mobility technologies for indoor applications. Toyota's Executive Technical Advisor Dr. Gill Pratt, will act as the Chief Executive Officer of TRI.

Zacks Rank

Currently, Toyota carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include General Motors Company GM , American Axle & Manufacturing Holdings Inc. AXL and Lithia Motors Inc. LAD . All these stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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