Sakana AI raises $135M Sequence B at a $2.65B valuation to proceed constructing AI fashions for Japan

As U.S. giants like Google, OpenAI and Anthropic race to develop the massive language fashions that underpin their AI merchandise, startups equivalent to Sakana AI, Mistral AI, DeepSeek and AI21 Labs are carving out their very own area of interest with specialised fashions designed for particular areas, industries, or distinctive options.

In pursuit of that objective, Tokyo-based Sakana AI has closed a ¥20 billion (roughly $135 million) Sequence B funding spherical, which values the corporate at $2.65 billion post-money, up from a pre-money valuation of $2.5 billion, CEO David Ha informed TechCrunch.

Based in 2023 by former Google researchers Llion Jones, Ren Ito and Ha, Sakana AI makes reasonably priced generative AI fashions that work effectively with small datasets and are optimized for the Japanese language and tradition.

The Sequence B spherical drew a mixture of new and returning buyers, combining Japan’s monetary heavyweights like Mitsubishi UFJ Monetary Group (MUFG) with international enterprise gamers equivalent to Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In-Q-Tel (IQT).

“We plan to deploy the brand new capital for not solely R&D, together with [AI] mannequin improvement, but in addition to develop our workforce for engineering, gross sales, and distribution groups in Japan,” Ha mentioned. This 12 months, Sakana has expanded its presence in Japan, teaming up with main native enterprises, together with Daiwa and MUFG, and creating AI options.

Ha, who beforehand led analysis at Stability AI and labored at Google and Goldman Sachs, additionally mentioned Sakana plans to develop its enterprise enterprise past finance into the economic, manufacturing, and authorities sectors in 2026.

Wanting forward, the corporate is eyeing the protection, intelligence and manufacturing sectors. The 2-year-old startup additionally mentioned will probably be “actively pursuing strategic funding, partnerships and M&A for long-term international development.

Sakana says it sees sturdy international demand for sovereign AI options that mirror “nationwide cultures and values.” The Japanese startup added that focusing its R&D efforts on AI merchandise after LLMs are skilled helps it effectively construct superior fashions tailor-made to Japan, taking a path distinct from the large-scale AI mannequin race.

This funding spherical comes roughly a 12 months after the corporate’s Sequence A spherical, wherein it raised about ¥30 billion ($214 million) at a $1.5 billion valuation. Sakana had raised roughly $244 million in whole as of March 2025, in keeping with PitchBook, so this spherical would take that whole to about $379 million.