Sakana AI Secures $135M Series B Funding to Accelerate Japanese-Language AI Development
Key Points
- Sakana AI raised ¥20 billion (~$135 million) in a Series B round.
- The round values the startup at $2.65 billion post‑money.
- Investors include MUFG, Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In‑Q‑Tel.
- Funding will boost R&D for Japanese‑optimized generative AI models.
- The company will expand engineering, sales and distribution teams in Japan.
- Sakana aims to extend its enterprise reach beyond finance into industrial, manufacturing, government, defense and intelligence sectors.
- Founder‑CEO David Ha plans to pursue strategic partnerships, investments and acquisitions.
- Existing collaborations include partnerships with Daiwa and MUFG.
Tokyo‑based Sakana AI announced a ¥20 billion (approximately $135 million) Series B financing round that values the startup at $2.65 billion. Led by a mix of Japanese financial institutions and global venture firms, the round will fund further research and development of generative AI models optimized for the Japanese language, expand engineering and sales teams, and broaden the company’s enterprise reach beyond finance into industrial, manufacturing, government, defense and intelligence sectors. Founder‑CEO David Ha highlighted plans to pursue strategic partnerships, investments and acquisitions to sustain long‑term growth.
Funding Round Highlights
Sakana AI closed a Series B financing round of ¥20 billion, roughly $135 million, pushing its post‑money valuation to $2.65 billion. The round attracted a blend of domestic and international investors, including Mitsubishi UFJ Financial Group (MUFG), Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In‑Q‑Tel (IQT). Existing backers also participated, underscoring continued confidence in the company’s trajectory.
Company Background and Leadership
Founded in 2023, Sakana AI was created by former Google researchers Llion Jones, Ren Ito and David Ha, who now serves as chief executive officer. The firm focuses on building affordable generative AI models that excel with limited data sets and are finely tuned to Japanese language nuances and cultural contexts. Prior to Sakana, Ha led research at Stability AI and held roles at Google and Goldman Sachs.
Strategic Use of Capital
The new capital will be allocated to multiple priorities. First, Sakana plans to deepen its research and development efforts, creating more advanced large language models tailored to Japan. Second, the company will expand its engineering, sales and distribution workforce within Japan to better serve enterprise customers. Third, Sakana intends to broaden its market focus beyond the financial sector—where it already collaborates with firms like Daiwa and MUFG—into industrial, manufacturing, government, defense and intelligence domains, with a target timeline extending into 2026.
Growth and Partnership Outlook
CEO David Ha emphasized an “active pursuit” of strategic investments, partnerships and potential acquisitions to support long‑term global growth. The firm’s recent collaborations with leading local enterprises signal a commitment to embedding its AI solutions across a range of Japanese industries. By concentrating R&D on post‑training model adaptation, Sakana aims to deliver sophisticated AI products efficiently, distinguishing itself from larger‑scale model races pursued by global tech giants.
Market Position and Future Vision
Sakana AI positions itself as a specialist provider of sovereign AI solutions that reflect national cultures and values. Its focus on the Japanese market addresses a growing demand for AI that respects linguistic and cultural specificity. Looking ahead, the company envisions expanding its enterprise footprint, entering new verticals and exploring opportunities in defense, intelligence and manufacturing, while maintaining a strong emphasis on research excellence and strategic collaboration.