Sakana AI Raises $135M Series B - AI for Japan

The Rise of Specialized AI Startups

While major U.S. companies like Google, OpenAI, and Anthropic are heavily invested in developing large language models for their AI offerings, a number of startups – including Sakana AI, Mistral AI, DeepSeek, and AI21 Labs – are establishing themselves by focusing on specialized models.

These models are designed to cater to specific regional needs, particular industries, or offer unique functionalities.

Sakana AI Secures $135 Million in Series B Funding

Tokyo-based Sakana AI recently completed a ¥20 billion (approximately $135 million) Series B funding round. This valuation places the company at $2.65 billion post-money, an increase from its previous pre-money valuation of $2.5 billion, as confirmed by CEO David Ha to TechCrunch.

The company was established in 2023 by former Google researchers: Llion Jones, Ren Ito, and Ha.

Focus on Japanese Language and Culture

Sakana AI develops generative AI models that are both affordable and effective, even when working with limited datasets. A key differentiator is their optimization for the Japanese language and cultural nuances.

Investor Mix

The Series B funding round attracted a diverse group of investors, combining prominent Japanese financial institutions with global venture capital firms.

• Mitsubishi UFJ Financial Group (MUFG)
• Khosla Ventures
• Macquarie Capital
• NEA
• Lux Capital
• In-Q-Tel (IQT)

Strategic Deployment of Funds

According to Ha, the newly acquired capital will be allocated to both research and development – specifically AI model development – and to expanding the company’s workforce.

Expansion will focus on engineering, sales, and distribution teams within Japan.

Sakana AI has already increased its presence in Japan through collaborations with leading companies like Daiwa and MUFG, resulting in the development of tailored AI solutions.

Expansion Beyond Finance

Ha, who has a background in research at Stability AI, Google, and Goldman Sachs, indicated that Sakana AI intends to broaden its enterprise business.

The company plans to extend its reach beyond the financial sector into industries such as industrial manufacturing and government in 2026.

Future Growth and Strategic Partnerships

Looking further ahead, Sakana AI is targeting the defense, intelligence, and manufacturing sectors.

The startup also stated its intention to actively explore strategic investments, forge new partnerships, and consider mergers and acquisitions to facilitate long-term global expansion.

Sovereign AI and Cultural Relevance

Sakana AI recognizes a growing global demand for sovereign AI solutions that accurately reflect “national cultures and values.”

The company’s approach of concentrating R&D efforts on refining AI products *after* initial LLM training allows for the efficient creation of advanced models specifically tailored to Japan, diverging from the large-scale AI model development race.

Funding History

This Series B round follows a Series A round completed approximately one year prior, where the company secured ¥30 billion ($214 million) at a $1.5 billion valuation.

As of March 2025, PitchBook data indicates Sakana AI had raised approximately $244 million in total funding, bringing the cumulative total to around $379 million with this latest round.