Sakana AI raises $135M Series B at a $2.65B valuation to continue building AI models for Japan | TechCrunch

"Founded in 2023 by former Google researchers Llion Jones, Ren Ito and Ha, Sakana AI makes affordable generative AI models that work well with small datasets and are optimized for the Japanese language and culture. The Series B round drew a mix of new and returning investors, combining Japan's financial heavyweights like Mitsubishi UFJ Financial Group (MUFG) with global venture players such as Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In-Q-Tel (IQT)."

""We plan to deploy the new capital for not only R&D, including [AI] model development, but also to expand our workforce for engineering, sales, and distribution teams in Japan," Ha said. This year, Sakana has expanded its presence in Japan, teaming up with leading local enterprises, including Daiwa and MUFG, and developing AI solutions."

"Ha, who previously led research at Stability AI and worked at Google and Goldman Sachs, also said Sakana plans to expand its enterprise business beyond finance into the industrial, manufacturing, and government sectors in 2026. Looking ahead, the company is eyeing the defense, intelligence and manufacturing sectors. The two-year-old startup also said it will be "actively pursuing strategic investment, partnerships and M&A for long-term global growth."

Sakana AI closed a ¥20 billion Series B funding round at a ¥2.65 billion post-money valuation. The startup was founded in 2023 by former Google researchers Llion Jones, Ren Ito and David Ha and focuses on affordable generative AI models optimized for Japanese language and culture and effective with small datasets. The Series B attracted both domestic financial firms like MUFG and global investors including Khosla Ventures, Macquarie Capital, NEA, Lux Capital and In-Q-Tel. New capital will fund R&D, model development and expansion of engineering, sales and distribution teams in Japan. Plans include enterprise expansion beyond finance into industrial, manufacturing, government, defense and intelligence, alongside strategic investments, partnerships and M&A for global growth.

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