Toyota Motor and Japan’s Nippon Telegraph and Telephone (NTT) will invest 500 billion yen ($3.26 billion) in research and development to create artificial intelligence software to improve self-driving, Nikkei reported on Tuesday.

The automaker and the Tokyo-headquartered telecommunications major are planning to develop automotive software which will use AI to anticipate.

The firms are currently looking to have a working system ready by 2028 and provide it to other automakers.

The deal comes at a time when Japanese automakers are looking to tap into the booming advanced autonomous driving market, which is primarily dominated by Tesla and other Chinese firms.

Toyota’s Mirai fuel-cell vehicle has been equipped with a hands-free driving function since 2021.

The two firms had joined hands back in 2017 to develop technology for 5G-connected cars and a capital tie-up as part of a smart city project in 2020.

Toyota said the information in the report was not something it had announced. It added it would continue to cooperate with NTT to create a safe and secure mobility future.