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Toyota to Spend $1 Billion on AI and Robotics Lab in Silicon Valley

Toyota is investing $1 billion in a research company it's setting up in Silicon Valley to develop artificial intelligence and robotics, underlining the Japanese automaker's determination to lead in futuristic cars that drive themselves and apply the technology to other areas of daily life.

Toyota Motor Corp. President Akio Toyoda said Friday the company will start operating from January 2016, with 200 employees at a Silicon Valley facility near Stanford University. A second facility will be established near Massachusetts Institute of Technology in Cambridge. The investment, which will be spread over five years, comes on top of $50 million Toyota announced earlier for artificial intelligence research at Stanford and MIT.

Take a Tour of Japan’s Robot Hotel 0:45

Toyota said its interest extends beyond autonomous driving, which is starting to be offered by some automakers and being promised by almost all of them. The technology points to a new industry for everyday use, delivering a safer lifestyle overall, it said.

Toyota has already shown an R2-D2-like robot designed to help the elderly, the sick and people in wheelchairs by picking up and carrying objects. The automaker has also shown human-shaped entertainment robots that can converse and play musical instruments. As the world's top auto manufacturer, Toyota already uses sophisticated robotic arms and computers in auto production, including doing paint jobs and screwing in parts.

Related: Toyota Spends $50M on Self-Driving Car Research Centers

To drive home the message that the automaker's vision was more than about just cars, Toyoda appeared at a Tokyo hotel with high profile robotics expert Gill Pratt, who will head the new organization called Toyota Research Institute Inc. Pratt was formerly a program manager at the U.S. military's Defense Advanced Research Projects Agency (DARPA). He joined Toyota as a technical adviser when it set up its AI research effort at Stanford and MIT.

Pratt said the company's goals are to support older people in their homes with robotics, make cars free of accidents and use AI to allow all people to drive regardless of ability. He gave three examples from his personal life that motivate him to develop robotics and related technology: when he was a child, seeing a boy on a bicycle killed by a car; telling his 83-year-old father he could no longer drive; and sending his father to a nursing home when he was 84.