Tokyo-based Sakana AI has completed a ¥20 billion (approximately $135 million USD) Series B funding round, valuing the artificial intelligence firm at $2.65 billion post-money. The capital injection, confirmed by CEO David Ha, follows a pre-money valuation of $2.5 billion and is designated for accelerating research and development, along with expanding its workforce in Japan.
The funding round drew a consortium of new and existing investors, including Japanese financial institution Mitsubishi UFJ Financial Group (MUFG), alongside global venture capital firms such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT).
Sakana AI, established in 2023, specializes in developing generative AI models that are optimized for the Japanese language and culture and designed to function effectively with smaller datasets. The company has already formed partnerships with local enterprises in Japan, including Daiwa and MUFG, to deploy its AI solutions.
According to CEO David Ha, the company plans to utilize 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." Ha also indicated the company's strategic intent to broaden its enterprise business beyond the finance sector. In 2026, Sakana AI aims to expand into the industrial, manufacturing, and government sectors.
The company stated it is actively pursuing strategic investments, partnerships, and mergers and acquisitions to facilitate long-term global growth, specifically targeting the defense, intelligence, and manufacturing sectors. Sakana AI also noted strong global demand for what it terms "sovereign AI solutions" that reflect national cultures and values, underscoring its distinct R&D approach that focuses on AI products after large language models (LLMs) are trained, rather than participating in the large-scale LLM race.
This Series B round follows a Series A round in which the company raised approximately $214 million (¥30 billion) at a $1.5 billion valuation. As of March 2025, Sakana AI had reportedly raised approximately $244 million in total, according to PitchBook, bringing its new total to approximately $379 million.
