Sakana AI is a Japanese generative design startup that former Google researchers Llion Jones, Ren Ito and David Ha established in 2023. So far, they have raised ¥20 billion, roughly $135 million, in their Series B funding round. This round brings the company’s post-money valuation to $2.65 billion. That’s a big leap from its pre-money valuation of $2.5 billion prior to this round. The latest investment will accelerate Sakana AI’s research and development initiatives. It will primarily work on developing generative AI models that are tailored to the Japanese language and culture.
Sakana AI is focused on developing low-cost, generative AI models that perform with minimal datasets. To achieve this goal, the startup has developed close partnerships with several key local players, including local giants Daiwa and Mitsubishi UFJ Financial Group (MUFG). These partnerships are clearly increasing its profile in Japan’s highly competitive market. Such partnerships allow Sakana AI to tailor its solutions to the specific needs of Japanese businesses. This strategy provides Sakana AI a significant competitive advantage over other players in the large-scale AI model arms race.
The company is strategically positioning itself within the growing demand for sovereign AI solutions that reflect national cultures and values. With a base of LLMs trained, Sakana AI is now looking to direct its efforts toward research and development. This method gives them the flexibility to produce more detailed models customized to particular areas and sectors. This approach maximizes efficiency and ensures relevance in a rapidly globalizing technology landscape.
Sakana AI’s second round of Series B funding was oversubscribed with local, national and international investors. Some of the more recognizable names are Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT). This multitude of investors speaks to the overwhelming enthusiasm regarding the company’s unique path to unlocking and safely guiding the next wave of transformative AI advancement.
We caught up with David Ha, CEO of Sakana AI to learn more about the company’s upcoming plans.
“We plan to deploy the new capital for not only R&D, including [AI] model development, but also to expand our workforce for engineering, sales, and distribution teams in Japan.” – David Ha
The company’s previous Series A funding round raised around ¥30 billion, or ≈ $214 million. That round was at a reported valuation of $1.5 billion. This year over year growth trajectory is a testament to Sakana AI’s dedication to grow their ministry within the booming AI field.
Sakana AI’s commitment to creating cutting edge AI solutions designed specifically for Japan’s deeply rich cultural backdrop is proving to be a more and more timely endeavor. At the same time, the global demand for specialized AI products is increasing dramatically. Sakana AI is prepared for sustained growth by investing wisely, developing strategic partnerships, and pursuing mergers and acquisitions.
