Japanese Startup Sakana AI Attracts $70 Million from Major Investors in Series A Funding

Japanese startup Sakana AI, known for its foundational AI models, is set to raise approximately $70 million. The company, backed by NVIDIA, has attracted investments from major Japanese financial institutions and corporations. 

In its latest Series A funding round, Sakana AI secured about 30 billion yen (around $214 million) from prominent backers, including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, Mizuho Financial Group, and others such as NEC, SBI Group, Dai-ichi Life Insurance, Itochu Group, KDDI, Fujitsu, and Nomura Holdings.

Founded in July 2023 by former Google researchers, Sakana AI has quickly established itself as a key player in Japan’s AI ecosystem. The company has secured access to one of Japan’s supercomputers and is actively building partnerships to enhance the local AI infrastructure. Sakana AI’s unique approach, which integrates foundational models inspired by nature, has positioned it as a pioneer in the field.

The company that started with a vision to advance AI technology by drawing inspiration from natural processes, Sakana AI, achieved a valuation of $1.5 billion shortly after its inception. The company has automated foundational model integration, optimizing the training of large language models (LLMs) and developing an “AI Scientist” technology designed to automate the R&D process itself.

The Series A round also attracted notable Silicon Valley venture capitalists like New Enterprise Associates (NEA), Khosla Ventures, Lux Capital, Translink Capital, 500 Global, and NVIDIA. 

The diverse pool of investors has shown Sakana AI’s strong appeal both domestically and internationally. The investment has helped the company achieve a valuation of approximately $1.5 billion.

As Sakana AI continues to grow, its mission remains focused on leveraging its technological advancements to address challenges within Japanese society while also expanding its influence globally. The recent funding round will support the company’s ongoing efforts to advance its research and development initiatives. 

Securing investment from prominent Silicon Valley venture capitalists and global tech companies such as NVIDIA is a major milestone for Sakana AI. This support not only underscores the company’s innovative potential but also strengthens its ability to influence the global AI landscape. 

Sakana AI had initially aimed to raise over $100 million, supported by investments from New Enterprise Associates, Khosla Ventures, and Lux Capital, alongside NVIDIA. The successful completion of this funding round, totaling approximately 30 billion yen ($276 million).

The company’s recent advancements are noteworthy: in March, Sakana AI pioneered a method to automate the integration of various foundational models, including large language models (LLMs). By June, it had developed techniques to enhance the efficiency of LLM training, and in August, it unveiled “AI Scientist,” a technology designed to automate the R&D process itself. 

Co-founder and CEO David Ha, who helped establish Google Brain in Tokyo, and co-founder Llion Jones, a key author in the current AI research wave, are at the wheel of these innovations.

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