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Japan as a Choice

As information infrastructure becomes tied to national strategy, and both cloud and AI are increasingly framed within the context of geopolitics, nations are now faced with a decision: which information network to connect to, and on which compute infrastructure to build their society.

Many countries have effectively left that decision to Big Tech. The American cloud, or the Chinese cloud—not so much a matter of choosing, but of being absorbed into one or the other. In parts of Europe, there are now efforts to build “sovereign” systems, but even those often amount to little more than a reshuffling of dependencies.
This is something I felt directly, through discussions I had at CERN.

Beyond the startup

In this context, I’ve been thinking about the potential of a third option: Japan.

Not because Japan is technologically superior. In terms of compute resources, latent energy reserves, software competitiveness—Japan may in fact be at a relative disadvantage.

Even so, Japan holds a unique kind of value: neutrality, transparency, and trust—layers that aren’t easily quantified.

It’s a rule-of-law nation, with high disaster resilience, cautious about global-scale data usage, and with a strong social security layer. These form the foundation of what might be called national-level “assurance.”

In training AI models, it’s no longer just about how much you can compute. Where the data is processed, and under what ethical standards, now directly impacts long-term value. Ethics itself has become part of the infrastructure.

That’s why I believe that choosing Japan—specifically, the combination of its compute infrastructure and its legal framework—may increasingly hold structural significance. As companies, organizations, and even individual developers begin to consider “where to run” their projects, Japan may come to be seen as a politically and culturally “acceptable” nation.

Just as, in the world of finance, Switzerland, New York, Hong Kong, and Singapore once played such roles—Japan, or more precisely, Japan’s regional cities, could become a new center.
Perhaps the world is already beginning to seek out this option called Japan.

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The Age of a Compute-Backed Economy Where Semiconductors Anchor Trust

In the past, the foundation of the economy was gold.
Under the gold standard, currency was backed by physical assets.
The rarity of gold itself directly reflected the credibility of a nation and the value of its currency. That was the world we once lived in.

After a long phase of economic expansion unmoored from tangible assets, we are now entering a world where computational capacity is beginning to take the place once held by gold.

AI has become the foundation of all economic activity.
Industries are run by models. Decisions are made by computation.
In such a society, value is no longer created by labor—but by computational resources themselves.

And what are computational resources?
They are, in the physical sense, electricity, compute devices, cooling infrastructure, access as a matter of policy, and above all, semiconductors.

In the coming world, a nation’s credibility will be determined by how much it can compute.
National power will increasingly reflect the total computational capacity it controls.
A country that possesses semiconductor design and fabrication capabilities—and the energy and infrastructure to operate them—will be able to anchor its currency with computational resources.

This represents a transition into a compute-backed economic system.

Where once nations signaled their monetary credibility with gold reserves, they may soon point to the total number of GPGPUs they own, the strength of their AI training infrastructure, or the volume of high-quality data they control.
We may enter a world where it is reasonable to say, “Our currency is stable because we possess sufficient compute.”
It’s possible that compute has already rewritten the very concept of military power.

Computational resources are invisible. And their value is fluid.
Electricity prices, cooling efficiency, software optimization, algorithmic efficiency, and data quality—all of these dynamically affect the credibility of a currency.
This is a real-time economic foundation, so dynamic that humans alone may be unable to grasp it.
It presupposes communication between AIs.
And for any nation without computational resources to participate in that communication, the end may already be near.

Until now, the economy has been driven by “intangible trust.”
But in the age of AI, it is “the total executable compute” that becomes the final form of trust.
And at the core of that trust lies the hard fact of how much compute a nation possesses—and governs—within its borders.

Semiconductors, electricity, and data are no longer merely parts of industrial structure.
They underpin currency and sovereignty.
And the nation that supports them will be the one that holds the next global reserve currency.

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How to Turn Forgotten Resources into Infrastructure

There are resources in society that are no longer in use. They once had value, but over time, as structures changed, they were forgotten, left behind, and left untouched. Vast tracts of land abandoned due to natural disasters or depopulation. Decommissioned power infrastructure. Obsolete telecom stations. Remote plots of land and tunnels no one visits anymore. These are resources left behind by shifting industrial structures—forgotten, but not gone.

If the structure changes again, these resources may take on new meaning. Especially in an era driven by computational power, these physical infrastructures can function as “foundations for computation.” There’s electricity. Land that can dissipate heat. Environments with high tolerance for noise. Cheap land and municipalities open to collaboration. Water sources and climates ideal for cooling. From a different perspective, these may have always been “ideal infrastructures.” It’s not that they lacked value—they simply hadn’t been redefined yet.

When urban depopulation accelerates and rural populations decline, we tend to assume that the value of those regions is lost. But I believe that’s a human-centered—and deeply arrogant—assumption. For AI and IoT, the presence of people is not essential. What matters is whether data can be collected, electricity is available, and there’s access to the internet. For them, the optimal environment isn’t necessarily the city. In fact, rural areas—less interference, more available power and space, and infrastructure that can be redesigned from scratch—might be “natural” habitats for AI and IoT. Just as wildflowers grow where human hands do not reach, it is in these quiet places that the information infrastructure of the future may take root.

In finance, Manhattan once served as a hub, and later, Singapore did too—each backed by policy, tax regimes, and geopolitical positioning. If “geographic advantage” takes on new meaning, then Japan’s rural regions still have a chance. Japan is a rule-of-law country with stable power infrastructure and a high degree of safety. From the standpoint of human-centric life, it may appear resource-poor, but if we look across the country with localized renewable energy in mind, these “low-value” areas could become ideal foundations for the next generation of infrastructure.

Modern computational infrastructure no longer needs to be concentrated in urban centers. In fact, to avoid the shortages of electricity, space, and cooling found in cities, it will spread outward—to the periphery, to rural regions. As this trend continues, the logic that “unused means worthless” will flip. Places once dismissed may now be rediscovered as the foundational base for computational resources—valuable precisely because no one else is using them.

And it’s not just resources being redefined. Entire regions can reclaim purpose by changing the scale of evaluation. Turning forgotten resources into assets is not simply about buildings or machinery—it marks a quiet update to the structure of society itself.

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A Society Made of META

Before we realized it, the world became saturated with “META.” Finance, the internet, information, the economy—every structure in society has been elevated into increasingly abstract layers.

Take the internet as an example. There is a product, and a website to promote that product. Then a portal site that aggregates and compares such websites. Then a meta-search engine that cross-searches multiple such portals. The meta-search engine’s ads appear in search results, and when you click through, you land on a page that again displays the same meta-search ads. The structure folds in on itself, loops back, and begins to self-reference.

In this dense informational world, it becomes increasingly difficult to tell what is real and what is merely a reference. Unless we step back and observe with distance, we can no longer distinguish truth from echo, origin from surface.

The same phenomenon is happening in finance. The collapse of subprime mortgages was a symbolic example. Home loans became products, then were repackaged as financial instruments. These were bundled into CDOs, which in turn spawned more derivative products. Credit ratings were assigned, and in the end, everything became “an investment product.” People were trading abstracted assets, disconnected from the original substance—houses, borrowers, and local economies.

This meta-ization will only accelerate. In every field, structures that are distant from primary information will be mass-produced. Some will stack meta-layers on top of meta-layers and attempt to dominate from above. Competition will occur at these higher layers. GDP might appear to grow, but what does that “growth” even represent? We’ll gradually lose the means to measure whether it reflects actual value.

In such a world, what must be reexamined is the “lower layer.” The lowest layers may appear vulnerable, exploitable, powerless. But all meta-structures depend on them. The more meta we become, the more power returns to the foundation.

Those who control electricity. Those who physically store data. Those who own land and access to natural resources.

These “real assets” begin to function as the final gravity that anchors the meta elite. Running a meta-structure still requires real-world energy. And that energy resides in the lower layers.

This is why, in the future, true power won’t belong to those who control the surface. It will belong to those who control the base. At the end of meta, physics regains its force.

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The Concept of Distributed National Infrastructure

Until now, national infrastructure was something centrally managed and deployed across an entire country. Power plants, communication networks, water systems, roads, and data centers—all followed a model of “build in one place, use everywhere.” It was the nation that built, protected, and supplied these systems.

But that structure is slowly starting to change.

As portions of information infrastructure and computational resources come to be operated by specific tech giants, the infrastructure that once sat beneath the authority of the state is beginning to form a structure parallel to it. And what’s coming next is a shift away from centralization—toward a physical and logical model of “distribution.”

Distribution doesn’t simply mean breaking things into smaller parts. It means separating locations, ownership, control rights, power sources, and networks. It means running each independently, while allowing them to function together as a single system. That, to me, is the core of what “distributed national infrastructure” means.

This kind of structure is often discussed in terms of redundancy in disasters or risk dispersion in geopolitics. But more importantly, I believe it becomes critical when we begin asking, “Under whose sovereignty does this infrastructure operate?”

Entities not belonging to any central authority, but possessing social functions equal to or greater than national infrastructure. Cloud services, blockchain networks, local compute clusters, off-grid energy systems—when combined, these create a new kind of infrastructure that transcends borders and legal systems.

Whether this becomes something that replaces the nation-state, or something that complements it, remains to be seen. But what’s clear is that infrastructure is no longer something exclusive to states.

Perhaps we are entering an era where infrastructure is not something built by the state, but something into which the state must now merge—beyond the constraints of geography and the linear flow of time.

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The Concept of the Overlay State

Traditionally, a state has been defined by physical territory and the institutions attached to it. Tax systems, laws, currencies, education, communications, and infrastructure—all layered over geographic space to create the framework we call a nation.

But in recent years, a new layer has quietly begun to emerge. It is a realm structured not within physical space but within a computational dimension—an additional space layered atop existing infrastructure. One where the flow of time is not bound by human perception, and where even space-time itself may be transcended.

Just as the cloud now operates above physical data centers. Just as blockchain has been layered on top of the existing internet. If this trajectory continues, we may soon see a structure that resembles a “state overlaid upon the state.”

Currency no longer has to be issued by governments. Data no longer needs to cross borders. Identity no longer depends solely on passports. Communication flows across regulatory regimes.
In this context, functions like information, computation, authentication, currency, and governance—what we once considered the essential operations of a state—are absorbed into higher-order structures. They become meta-layers. And these new structures are not necessarily designed by states.

This trajectory points toward something I would describe as an “overlay state.”
It sits atop existing nations, supplements or overrides legacy institutions, and operates on a new logic. It is governed not by borders, but by protocols. Not by passports, but by keys. Not by laws, but by smart contracts. Not by armies, but by compute resources and cryptographic systems.

The distributed networks now rising around the world under the banner of decentralization may not merely be technical experiments. They may be the early signs of a new kind of sovereignty.
Whether this becomes a new form of state, a corporate construct, or something else entirely—we cannot yet say.
But what I do feel, more strongly each day, is that it is already layering itself over society.

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Cryptographic Authentication in the Post-Password Era

For a long time, internet authentication relied on passwords. But the limits of that system had already been clear for some time.

Unmemorable complex strings, password reuse, risk of leaks. A world built on passwords carried vulnerabilities from the very beginning.

Today, new authentication systems that combine biometric authentication—like facial recognition or fingerprint scanning—with cryptographic technologies are beginning to be deployed. For example, Apple’s Face ID, used with passkeys, links biometric information on the device with authentication on the internet. It is a shift from using ID-password combinations to using the human body itself as the key.

This dramatically reduces the risk of information leaks. Cryptographic technology, originally grounded in the principle of individual responsibility, is now evolving toward a balance with usability.

Furthermore, by combining blockchain technologies with zero-knowledge proofs, methods that allow individuals to prove their identity without disclosing passwords are becoming increasingly viable.

This points toward a new world. A world where there is no need to memorize passwords. Where there is no need to entrust sensitive information to the cloud. A world where one’s very existence can be authenticated. A world realized through the fusion of cryptographic technologies, biometric authentication, and decentralized identity systems.

Until now, improving security came at the cost of convenience, and prioritizing convenience came at the cost of security. But now, for the first time, a path is emerging where both can be achieved.

And this shift connects directly to the issues of personal freedom and sovereignty.

A society where you no longer entrust your identity to anyone else, but prove it yourself.
This is not just a technological innovation—it is the redefinition of internet society itself.

What proves “you” will change from here on.

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Nations Beyond Big Tech

Corporations Backed by States and the Proxy Wars Driven by AI

A nation has traditionally been defined as an entity with territory, a population, a military, currency, and the right to conduct diplomacy. But that structure is quietly beginning to change.

Today, corporations are shouldering the roles of states—and beginning to surpass them. Leading tech giants like Big Tech and Tesla, backed by national governments, are wielding their financial power, computational resources, and information infrastructure to influence international society.

Corporations do not hold territory, but they control infrastructure. They do not have citizens, but they have users. They do not command armies, but they possess cyber capabilities and information dominance. They do not issue national currencies, but they have built their own economic spheres. They do not formally conduct diplomacy, but they negotiate across national borders.

In many ways, corporations are beginning to replace the traditional functions that states once held.

Moreover, corporations now receive direct energy and financial support from governments. As if endorsed by national policies to “use as much electricity as needed,” they are hoarding computational resources, developing AI, and expanding their power to control the very foundations of society.

The advancement of AI is accelerating this trend even further. Corporations that can control AI will dominate the information space. And those who dominate the information space will inevitably control the physical world.

The wars of the future will no longer be fought with military force.

We have entered an era of proxy wars between states, fought through corporations.

And ultimately, it may not be states that win—but corporations. States are becoming increasingly dependent on corporations, while corporations are beginning to use states as tools. And when the next dominant entity emerges, will we even be able to recognize it?

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The Structure of the New Resource War

In the era of AI, what is the most valuable resource? When I think about it, the first things that come to mind are “GPUs” and “data.”

At the same time, the idea that these are important resources has already become common sense. The real question is what kind of resources they are.

During the Industrial Revolution, oil was the resource that moved nations. It supported industrial production, transportation, and even determined the outcomes of wars. It was said that whoever controlled oil controlled the world.

Today, GPUs are beginning to resemble oil. They drive generative AI, support military technologies, and stand at the frontlines of information warfare. Whether or not a nation possesses computational resources now determines its strategic strength.

I wrote about this perspective in “The Geopolitics of Computational and Energy Resources.”

However, the emergence of ChatGPT, and later DeepSeek, has made things a little more complicated. Having massive amounts of GPUs and data is no longer an absolute prerequisite. With the right model design and training strategy, it has been proven that even limited computational resources can produce disruptive results.

In other words, GPUs, once similar to oil, are now also beginning to resemble “currency.”

It’s not just about how much you have. It’s about where, when, and how you use it. Liquidity and strategic deployment determine outcomes. Mere accumulation is meaningless. Value is created by circulation and optimized utilization.

Given this, I believe the coming resource wars will have a two-layer structure.

One layer will resemble the traditional oil wars. Nations will hoard GPUs, dominate supply chains, and treat computational resources like hard currency.

The other layer will be more flexible and dynamic, akin to currency wars. Teams will compete on model design, data engineering, and chip architecture optimization—on how much performance they can extract from limited resources.

DeepSeek exemplified the second path. In an environment without access to cutting-edge GPUs, they optimized software and human resources to extract performance that rivals the world’s top models.

In short, simply possessing computational resources will no longer be enough. It will be essential to customize, optimize, and maximize the efficiency of what you have.

It’s not about “who has the most.” It’s about “who can use it best.”

I believe this is the structure of the new resource war in the AI era.

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We Cannot Recognize the Singularity

We often hear people say, “The Singularity is coming.” However, lately, I’ve started to think—it’s not that it’s coming. It has already begun.

During the Industrial Revolution, those living through it didn’t think they were in a revolution. The invention of the steam engine was seen as just another new tool. Even when the railway network expanded and dramatically changed the speed at which people could move, it wasn’t called a “revolution” until much later.

When technology transforms society, it does so quietly, but surely. Those living through it can only see isolated “dots” of change. It’s only afterward, when the dots connect into lines and lines into planes, that the true scale becomes visible.

Today, generative AI is appearing everywhere. Writing text, creating images, generating voices, coding programs, supporting decision-making—activities that used to belong only to humans are gradually being replaced by AI.

Thinking back, there was the explosive spread of the internet, the practical implementation of GPUs, the paradigm shift to parallel processing, the mass adoption of smartphones. But we can no longer say exactly where it all started.

Most people probably think of smartphones or AI itself as revolutionary. But those are just points along the way. It’s likely that a revolution too massive to recognize is already underway.

Standing on the Earth, we don’t feel it racing through space at incredible speeds. Likewise, we are caught up in a vast movement right now. But from inside it, we cannot perceive our own motion.

The Singularity brought about by AI will be the same. We are already inside it.

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