Panasonic Holdings is aggressively expanding its artificial intelligence business as it seeks to boost long-term profits despite weaker-than-expected performance in its electric vehicle battery division.

The company announced ambitious plans to increase earnings through AI-related infrastructure and industrial technologies.

Panasonic said demand linked to artificial intelligence and data centres is growing rapidly, creating new opportunities beyond the electric vehicle market.

The company is now developing battery technologies designed specifically for data centres and AI infrastructure systems.

Its battery division, which supplies companies including Tesla, experienced declining profits due to rising costs, weak domestic EV demand and tariffs affecting international trade.

Executives acknowledged that the EV market has become more challenging than previously expected.

To diversify revenue sources, Panasonic is increasing investments in industrial systems, energy infrastructure and advanced AI technologies.

The company believes artificial intelligence will become a key driver of future business growth across multiple sectors.

Analysts say Panasonic’s strategy highlights how electronics companies are repositioning themselves around AI infrastructure as enthusiasm surrounding electric vehicles cools slightly in some markets.

AI-related industries are increasingly attracting major corporate investment worldwide.

Source: Reuters