Mitsubishi Heavy Industries (7011.T): First Take: Capital and business alliance with PFN; eyes domestic AI development in national security

On September 16, Mitsubishi Heavy Industries (MHI) announced that it entered into a capital and business alliance agreement with Preferred Networks (PFN) on August 31. MHI plans to underwrite shares issued by PFN through a third-party allotment, subject to the completion of necessary approval procedures, and to invest a total of ¥10 bn in PFN. MHI had entered into a business alliance agreement in June regarding the joint development of cutting-edge AI technologies, and had stated its aim to conclude a capital and business alliance agreement during FY3/27. The primary purpose of the capital and business alliance is to accelerate joint research and development, as well as real-world deployment, of intelligent and autonomous machinery and systems requiring high reliability and rapid responsiveness in mission-critical domains such as social infrastructure, aerospace, defense, and space. MHI will contribute its extensive technical expertise in design, manufacturing, and control, along with