Japanese telecommunications giant NTT has unveiled plans to partner with Toyota Motor and invest in a US-based startup to advance driverless vehicle technology. NTT’s goal is to commence testing autonomous buses and taxis as early as 2025, aligning with the surging interest in self-driving technology in Japan.

NTT is set to invest approximately 10 billion yen (about $66.91 million) in May Mobility, a US startup specializing in self-driving systems. This strategic move reflects NTT’s growing involvement in the autonomous driving sector, as it follows Honda Motor’s recent announcement in October about forming a joint venture with General Motors and its robo-taxi firm, Cruise. Honda’s objective is to launch a driverless ride service in Japan by early 2026.

It’s worth noting that while there were reports in the Nikkei newspaper suggesting that NTT and Toyota would collaborate on vehicle development, both companies have since denied such plans. May Mobility has previously attracted investments from Japanese entities, including insurer Tokio Marine and a Toyota-affiliated venture capital unit.

This development signifies the increasing focus on self-driving technology in Japan, even though Cruise, General Motors’ driverless vehicle arm, temporarily halted its operations in the United States following a regulatory order to remove autonomous cars from California roads after an accident.

NTT’s commitment to testing driverless vehicle technology in partnership with Toyota and investing in May Mobility demonstrates the company’s dedication to staying at the forefront of technological advancements in the transportation sector.