While major U.S. companies like Google, OpenAI, and Anthropic are rapidly advancing the large language models powering their AI offerings, startups such as Sakana AI, Mistral AI, DeepSeek, and AI21 Labs are establishing themselves by creating specialized models tailored to particular regions, industries, or distinctive capabilities.
To further this mission, Tokyo-based Sakana AI has secured a Series B investment of ¥20 billion (around $135 million), bringing its post-money valuation to $2.65 billion—an increase from its previous $2.5 billion valuation—according to CEO David Ha in a statement to TechCrunch.
Established in 2023 by ex-Google researchers Llion Jones, Ren Ito, and David Ha, Sakana AI develops cost-effective generative AI models that perform well with limited data and are specifically tuned for Japanese language and cultural nuances.
The Series B funding attracted both new and existing backers, blending major Japanese financial institutions like Mitsubishi UFJ Financial Group (MUFG) with international venture capital firms such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT).
“Our intention is to use this new funding not only for research and development, including [AI] model innovation, but also to grow our teams in engineering, sales, and distribution within Japan,” Ha explained. Over the past year, Sakana has broadened its footprint in Japan, collaborating with top domestic companies like Daiwa and MUFG, and working on AI-driven solutions.
Ha, who previously headed research at Stability AI and held roles at Google and Goldman Sachs, also mentioned that Sakana aims to extend its enterprise offerings beyond finance to include industrial, manufacturing, and government sectors by 2026.
Looking forward, the company is targeting the defense, intelligence, and manufacturing industries. The startup, now two years old, also stated it will “actively seek strategic investments, partnerships, and mergers and acquisitions to support sustained global expansion.”
Sakana reports a significant international appetite for sovereign AI solutions that embody “national cultures and values.” The company also noted that by focusing its research and development on AI products after LLM training, it can efficiently create advanced models customized for Japan, setting itself apart from the mainstream large-scale AI model competition.
This latest investment comes about a year after Sakana’s Series A, when it raised approximately ¥30 billion ($214 million) at a $1.5 billion valuation. According to PitchBook, Sakana had secured roughly $244 million in funding as of March 2025, so this round brings its total raised to around $379 million.
