Japanese guitarist Makata Kawabata decided to continue his musical explorations by bringing together like-minded individuals to create trippy psychedelic freak-outs inspired by , Krautrock, and '70s progressive hard rock. AMT were founded in 1996 as a "soul collective." It's not a commune in the full sense since the members don't all live together, but it is based on communal values and has even been mistaken by some people for a religious cult."

Kawabata started the collective because he wanted to give unknown musicians a chance to record and release albums that would reach a wider audience; his original intent was not to create an ongoing touring and recording band. Indeed, the group's self-titled debut album was released on Japan's in November 1997, and was essentially a solo project. He performed jam sessions with several other musicians, then edited and overdubbed the tapes to create something akin to musique concrète.

Kawabata assembled a group of musicians to tour overseas as Acid Mothers Temple in 1998.