Toyota is planning to boost research into artificial intelligence, robotics and big data through $1bn investment.
The company is also forming a new wing, Toyota Research Institute, which is expected to help the company narrow the gap between fundamental research and product development.
Toyota will be investing the amount over the next five years towards the new entity that will be located at Silicon Valley near Stanford University.
The automaker previously announced an investment of $50m over the next five years with MIT and Stanford to establish joint fundamental artificial intelligence research centers at each of the universities.
However, the previous announcement is not a part of the latest $1bn investment.
With the research and development, Toyota expects to solve the challenges that automakers could face while using artificial intelligence and big data. By doing so, the company aims to make the future of auto industry safer and freer.
Toyota president Akio Toyoda said: "As technology continues to progress, so does our ability to improve products.
"At Toyota, we do not pursue innovation simply because we can; we pursue it because we should. It is our responsibility to make life better for our customers, and society as a whole.
"I want to work with Gill, not just because he is a great researcher, but because I believe that his goals and motivations are the same as ours."
