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Toyota’s Financial Outlook Dampened by Tariffs and Yen Strength

Toyota vehicles await shipment at the Port of Nagoya in Japan last month.

In the face of global economic turbulence, Toyota Motor, the world’s largest automaker, is bracing for a 21% drop in profits this fiscal year. This projection is influenced significantly by the pressures from U.S. tariffs and an appreciating yen, both of which overshadow the otherwise robust demand for hybrid vehicles.

For the year ending March 2026, Toyota forecasts an operating income of 3.8 trillion yen, roughly $26 billion, marking a reduction from the 4.8 trillion yen reported the previous year. This aligns with predictions from industry analysts, yet the looming impact of tariffs on U.S.-bound exports remains a concern.

In addition to tariffs, Toyota faces the challenge of rising material costs intensified by the yen’s strength. Expanding its production base in the U.S. could mean higher labor expenses and increased investment needs—a double-edged sword many global automakers are dealing with.

Meanwhile, Toyota’s sales in China’s competitive market, although better than some competitors, continue to battle against strong local brands.

Mirendil Signs $100 Million Google Cloud Deal To Advance Self-Improving AI

AI startup Mirendil has signed a multi-year agreement worth more than $100 million with Google Cloud to secure computing infrastructure for its self-improving AI research.

The partnership reflects growing competition among AI companies to lock in access to high-performance computing, while cloud providers race to attract promising startups developing next-generation AI models.

Backing The Next Stage Of AI Research

Mirendil plans to use Google’s Tensor Processing Units (TPUs), Nvidia GPUs and managed training infrastructure to develop AI systems capable of improving their own performance over time.

Known as recursive self-improvement, the concept focuses on building AI that can refine its knowledge and capabilities with minimal human intervention. The technology is attracting growing interest across the industry, with several startups and leading AI labs exploring similar approaches.

According to co-founder and Chief Executive Behnam Neyshabur, the long-term goal is to develop AI that can automate scientific research and accelerate discoveries in fields such as medicine, biology and materials science.

Compute Capacity Becomes A Strategic Asset

Training increasingly advanced AI models requires enormous computing resources, making long-term infrastructure agreements a critical competitive advantage.

Mirendil said Google’s combination of TPUs and GPUs allows workloads to be matched with the most suitable hardware, improving efficiency while reducing costs for customers.

For Google Cloud, the agreement strengthens its position in the race to provide infrastructure for frontier AI developers, while giving the company exposure to one of the industry’s emerging approaches to next-generation artificial intelligence.

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