Home / Business and Economy / Tokyo Startup Sakana AI Raises $135M, Valued at $2.65B
Tokyo Startup Sakana AI Raises $135M, Valued at $2.65B
17 Nov, 2025
Summary
- Sakana AI raises $135M Series B, now valued at $2.65B
- Startup focuses on affordable, Japan-optimized AI models
- Plans to expand into industrial, manufacturing, and government sectors
In November 2025, Tokyo-based startup Sakana AI announced that it has raised a ¥20 billion (approximately $135 million) Series B funding round. This latest investment values the company at $2.65 billion post-money, up from a pre-money valuation of $2.5 billion.
Sakana AI was founded in 2023 by former Google researchers Llion Jones, Ren Ito, and David Ha, who now serves as the company's CEO. The startup focuses on developing affordable generative AI models that are optimized for the Japanese language and culture, working well with small datasets.
The Series B round attracted a mix of new and returning investors, including Japan's financial heavyweight Mitsubishi UFJ Financial Group (MUFG) and global venture firms like Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT).
Sakana AI plans to use the new capital for R&D, including AI model development, as well as to expand its workforce for engineering, sales, and distribution teams in Japan. The startup has already expanded its presence in the country, partnering with leading local enterprises like Daiwa and MUFG, and developing AI solutions for their needs.
Looking ahead, Sakana AI aims to expand its enterprise business beyond the finance sector and into industries like manufacturing, industrial, and government by 2026. The company is also eyeing the defense, intelligence, and manufacturing sectors for potential growth opportunities. Sakana AI says it will be "actively pursuing strategic investment, partnerships and M&A for long-term global expansion.
