Sakana AI Secures $135M Series B at a $2.65B Valuation to Advance Japan-Optimized AI Models

Sakana AI, the Tokyo-based artificial intelligence startup founded by Llion Jones, Ren Ito, and David Ha, has closed a ¥20 billion ($135 million) Series B round, lifting its valuation to $2.65 billion. CEO David Ha reported that the new capital will accelerate the company’s mission to build generative AI models tailored specifically to Japanese language, culture, and industry needs.

The round brings together major Japanese financial institutions such as MUFG alongside global investors including Khosla Ventures, Macquarie Capital, NEA, Lux Capital, and In-Q-Tel (IQT). Sakana AI, founded in 2023 by former Google researchers, focuses on efficient, affordable models that perform well on small datasets — positioning the company as an alternative to the vast LLMs developed by U.S. leaders like Google, OpenAI, and Anthropic.

Ha said the funding will support expanded R&D, model development, and significant growth across engineering, sales, and distribution in Japan. The company has already partnered with major local enterprises such as Daiwa and MUFG, and plans to broaden its enterprise reach into industrial, manufacturing, government, and eventually defense and intelligence sectors. Sakana AI emphasized growing global demand for sovereign AI systems that reflect national culture and values, and indicated it will pursue strategic investment and M&A to support long-term worldwide expansion.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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