Japan says progress made on $550B pact, with AI and chips weighing heavily on the next round

Japan’s trade minister said AI and semiconductor projects will dominate the third tranche of the $550 billion U.S. investment pact, after the first two rounds allocated $36 billion to oil, gas and minerals and $73 billion to nuclear and gas power plants. The pact gives Japan a fund-selection mechanism, unlike the EU’s framework, which merely commits private firms to invest $600 billion and guarantees a $40 billion purchase of U.S. AI chips.