As major U.S. players like Google, OpenAI and Anthropic continue to dominate the race for large-scale AI models, younger firms are finding room to innovate by tailoring systems to specific regions and industries. One of the fastest-rising contenders is Tokyo-based Sakana AI, which has secured a ¥20 billion (about $135 million) Series B round, pushing its valuation to $2.65 billion. Founded in 2023 by former Google researchers Llion Jones, Ren Ito and David Ha, the startup focuses on building cost-efficient generative AI models that excel with smaller datasets and are optimized for the Japanese language and cultural context.
The new funding round brings together a strong mix of domestic and international backers, including Mitsubishi UFJ Financial Group, Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In-Q-Tel. CEO David Ha said the fresh capital will fuel both model development and significant hiring across engineering, sales and distribution teams in Japan. Over the past year, the company has expanded local partnerships with major enterprises such as Daiwa and MUFG, deploying customized AI solutions across the financial sector.
Looking forward, Sakana AI plans to push beyond finance into industrial, manufacturing and government applications by 2026. The company is also preparing to engage more directly with defense and intelligence markets, signaling ambitions far broader than consumer or enterprise software. To support these goals, Sakana will be pursuing strategic investments, partnerships and acquisitions to strengthen its global position.
The startup sees rising international demand for sovereign AI systems that reflect national cultures, values and regulatory requirements. By focusing research efforts on the post-training stages of model development, Sakana says it can more efficiently fine-tune advanced AI aligned specifically to Japan’s needs. This latest round comes roughly a year after its ¥30 billion Series A, bringing total fundraising to around $379 million and positioning Sakana AI as one of the most significant new players shaping the next chapter of regionally grounded AI innovation