Toyota Motor Corp. and the Japanese telecom company Nippon Telegraph and Telephone Corp. (NTT) are investing 500 billion yen ($3.26 billion) in artificial intelligence research and development to create advanced software aimed at making autonomous driving safer, according to a recent report by the financial news platform Nikkei. 

This AI-driven software will be capable of anticipating potential accidents and taking control to prevent them, a significant leap in self-driving technology, states the Nikkei report.

The collaboration between Toyota, a global leader in automotive manufacturing, and NTT, one of Japan's largest telecommunications firms, marks a strategic move as Japanese companies push to compete in the growing autonomous driving market, which Tesla currently leads. 

With this new technology, the companies plan to develop a system not only for Toyota's vehicles but also for potential licensing to other automakers worldwide, which could accelerate adoption.

This partnership builds on a series of joint ventures dating back to 2017, when Toyota and NTT first collaborated on 5G technology for connected cars, and later expanded in 2020 to work on smart city infrastructure, states a report by Reuters. 

Toyota has already deployed a hands-free driving feature in its Mirai fuel-cell vehicle since 2021, and this new AI development seeks to further improve safety and control.

Although Toyota has not officially confirmed the details of the project, it stated it remains committed to collaborating with NTT to create a "safe and secure mobility future", states the Reuters report, which also adds that NTT has not yet responded to media inquiries about the news of the investment.