Tokyo — Japanese artificial intelligence startup Sakana AI has announced the successful completion of a ¥20 billion (approximately $135 million) Series B funding round, pushing its valuation to $2.65 billion.

The post-money valuation marks a significant rise from its previous $2.5 billion estimate, according to Chief Executive Officer David Ha.

Founded in 2023 by former Google researchers Llion Jones, Ren Ito and David Ha, Sakana AI focuses on developing cost-efficient generative AI models tailored specifically for Japanese language, culture and enterprise needs.

Unlike global AI leaders such as Google, OpenAI and Anthropic, which are building broadly scaled large language models, Sakana AI is positioning itself within the niche of region-specialized and culturally aligned AI technologies.

The latest investment round featured a blend of new and existing backers. Notable Japanese investors include Mitsubishi UFJ Financial Group (MUFG), alongside major international venture capital firms such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In-Q-Tel (IQT).

According to Ha, the fresh capital will support research and development focused on AI model innovation, and will also facilitate team expansion across engineering, sales and distribution operations within Japan.

In recent months, Sakana AI has strengthened partnerships with major corporations such as Daiwa and MUFG, aiming to deepen its integration into Japan’s digital transformation landscape.

Ha, who previously held positions at Stability AI, Google and Goldman Sachs, revealed that the company intends to scale its enterprise solutions beyond the financial sector.

Beginning in 2026, Sakana AI will target industries such as manufacturing, industrial engineering, government, intelligence and defense technology.

The company emphasized its commitment to building sovereign AI — AI systems designed to represent and prioritize national identity, cultural values and linguistic accuracy.

Sakana AI also adopts a unique development approach that focuses on product-driven R&D after model training, deviating from the global race of pursuing ever-larger large-language-model capabilities.

This Series B round comes roughly a year after Sakana AI raised ¥30 billion ($214 million) at a valuation of $1.5 billion during its Series A phase.

Prior to the new funding, the company had secured around $244 million, bringing its total raise to approximately $379 million.

Source: Techcrunch