Sakana AI Secures $135 Million in Series B Funding, Achieves $2.65 Billion Valuation
In a competitive landscape where major tech players like Google and OpenAI dominate the development of large language models, startups like Sakana AI are differentiating themselves with specialized AI solutions tailored to specific industries and cultural contexts. Founded in 2023 by ex-Google researchers Llion Jones, Ren Ito, and Ha, Sakana AI focuses on creating affordable generative AI models specifically designed for the Japanese language and market.
The recent Series B funding round totaled $135 million and attracted a mix of both new and existing investors. Prominent backers include Japan’s Mitsubishi UFJ Financial Group (MUFG) and major global venture firms such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT).
“We plan to utilize this capital for research and development, specifically in AI model optimization, and to enhance our teams in engineering, sales, and distribution here in Japan,” stated Ha. The startup has already begun strengthening its presence in the region by collaborating with key local players like Daiwa and MUFG to develop innovative AI solutions.
Ha, who has an extensive background in AI research from his previous roles at Stability AI and Goldman Sachs, mentioned that Sakana intends to broaden its enterprise applications beyond finance into sectors like industrial manufacturing and government by 2026. The company is also setting its sights on the defense and intelligence markets.
Sakana AI emphasizes the necessity for “sovereign AI solutions” that resonate with national cultures and values, indicating a strong global demand for context-specific AI technologies. By focusing on R&D for AI products tailored to Japan, the company aims to carve out a unique niche separate from the ongoing race for large-scale AI models.
This funding round arrives approximately one year after Sakana AI’s Series A, during which it raised around ¥30 billion (approximately $214 million) at a $1.5 billion valuation. To date, the company has raised around $379 million, with continued plans for strategic investments, partnerships, and acquisitions aimed at fostering long-term global growth.
