Prime Highlight
- Tokyo-based Sakana AI raised ¥20 billion ($135 million)in a Series B round, boosting its valuation to $2.65 billion as it advances its culturally aligned generative AI models.
- The startup aims to expand beyond finance and deliver specialized, localized AI solutions to industrial, manufacturing, government, and future defense sectors by 2026.
Key Facts
- Founded in 2023 by former Google researchers, Sakana AI has partnerships with companies like Daiwa and MUFG, and plans to grow its engineering, sales, and distribution teams using the new capital.
- Before this round, the company had raised about $244 million, bringing total funding to roughly $379 millionfollowing the Series B.
Background
Sakana AI, an artificial intelligence startup in Tokyo, raised ¥20 billion (about $135 million) in a Series B funding round, raising its valuation to $2.65 billion. The two-year-old company is taking a big step forward as it aims to become a leading developer of affordable, culturally relevant generative AI models.
Sakana AI was founded in 2023 by former Google researchers Llion Jones, Ren Ito, and CEO David Ha. The company builds AI systems that work well with the Japanese language and culture. Its models use smaller datasets, making them cost-effective for businesses that want localized AI solutions.
The Series B round drew interest from both new and returning investors. Major Japanese financial institutions, including Mitsubishi UFJ Financial Group (MUFG), joined global venture firms such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel. Ha said the new capital will support ongoing R&D, model development, and expansion of engineering, sales, and distribution teams.
Over the past year, Sakana AI has grown its presence in Japan by working with companies like Daiwa and MUFG. The startup plans to expand beyond finance and serve industrial, manufacturing, and government clients by 2026. It is also looking at future opportunities in defense and intelligence.
Ha noted strong global demand for “sovereign AI”, models built to reflect national values and cultural needs. Sakana’s strategy focuses on developing products after the base LLMs are trained, allowing it to build highly specialized systems efficiently and avoid competing directly with the largest AI model developers.
The new round follows Sakana’s Series A in 2024, when it raised ¥30 billion ($214 million) at a $1.5 billion valuation. Before the latest investment, Sakana had raised about $244 million, bringing its total funding to roughly $379 million.