Toyota Opens $10B ‘Woven City’ in Japan to Test Life with Robots and AI

SUSONO, Japan – October 7, 2025: Toyota has officially opened the first phase of Woven City, a $10 billion “test course for mobility” located at the foot of Mt. Fuji in Susono, Shizuoka Prefecture. First unveiled at CES 2020, the project now transitions from concept to reality, welcoming its first residents, innovators, and partner firms in what Toyota calls a “living laboratory” for future technologies.

From Vision to Reality

In September 2025, Toyota and its software subsidiary Woven by Toyota (WbyT) hosted the launch ceremony, marking the operational start of Woven City. Speaking at the event, Toyota Chairman Akio Toyoda, known as the “Master Weaver,” described the city as a place designed to inspire Kakezan, a Japanese concept for “multiplication” through collaboration and innovation.

The first phase will eventually host around 300 residents, including Toyota employees and their families referred to as “Weavers,” who will live and work within the ecosystem. The city will open to general visitors in fiscal year 2026.

A Living Laboratory for Future Mobility

Unlike typical smart city projects, Toyota envisions Woven City as a real-world testing ground for next-generation technologies, integrating mobility, robotics, energy, computation, and infrastructure into daily life. The initiative focuses on gathering real-world data and insights to refine products before global deployment.

Within Woven City, Toyota has invited 20 “Inventors”, startups, researchers, and partners, to co-develop and test technologies. Among them is musician Naoto Inti Raymi, who composed the city’s anthem and audio logo.

Key innovations being tested include:

• Autonomous vehicles and delivery robots operating on lidar and camera systems.
• Underground tunnels connecting buildings, allowing self-driving service vehicles to operate below pedestrian areas.
• Smart indoor air purification systems developed with Daikin Industries, designed to filter pollen and pollutants.
• These technologies are aimed at improving urban livability while reducing carbon emissions and enhancing safety.

Scale, Collaboration, and Design

Built on a former Toyota vehicle plant, Woven City will ultimately accommodate up to 2,000 residents. The city’s design separates pedestrian, slow vehicle, and fast vehicle lanes to ensure safety and efficiency.

Toyota’s collaboration network spans 12 Toyota Group companies, seven external partners, and innovators from sectors including mobility, energy, air conditioning, food, and electronics.

Strategic Investment in Innovation

The launch of Woven City marks a major milestone in Toyota’s transition from a traditional automaker to a mobility and software-driven enterprise. Shortly after the launch, Toyota unveiled Toyota Invention Partners (TIP), a new investment arm capitalized with ¥100 billion (≈ USD 670 million) to strengthen collaborations with startups in the mobility sector.

Meanwhile, Woven Capital, Toyota’s venture fund, introduced Fund II, worth approximately USD 800 million, targeting investments in AI, automation, climate tech, and energy innovation.

Challenges and the Road Ahead

Despite its promise, Woven City faces several challenges. The current phase’s small scale limits immediate insights, and Toyota acknowledges that profitability is not an early goal. Instead, the project serves as a long-term investment in innovation infrastructure, testing systems that could one day redefine how cities operate.

According to Toyota, future phases will expand the city’s population, open it to the public, and broaden the co-creation ecosystem to include international partners. The company hopes that lessons learned in Woven City will serve as a blueprint for sustainable urban development worldwide.