Key takeaways
- Sakana AI secures $135 million in Series B funding to enhance AI development in Japan.
- Funding will focus on R&D for Sovereign AI and expanding applications in finance, defense, and manufacturing.
- Sakana AI's valuation rises to $2.635 billion, setting a new record for unlisted startups in Japan.
- Investment received from notable firms like Mitsubishi UFJ and Khosla Ventures to foster sustainable AI innovation.
- Company aims to build a scalable ecosystem through strategic partnerships and potential mergers.
Sakana AI has announced on November 17 that it has raised $135 million (20 billion Yen) for its Series B round to accelerate its mission to develop AI sustainably and implement AI that benefits Japan.
The funding was received from new and existing investors, including Mitsubishi UFJ Financial Group (MUFG), Khosla Ventures, Factorial, Macquarie Capital, Fundomo, Mouro Capital, New Enterprise Associates, Geodesic Capital, Lux Capital, Ora Global, MPower Partners, Shikoku Electric Power, and In-Q-Tel (IQT).
The Series B funding will be allocated to accelerate R&D, with a focus on advancements in artificial intelligence through collective intelligence and self-evolution, particularly for the optimisation of Sovereign AI.
The company will strengthen its Applied Team to deepen finance partnerships and explore opportunities in defence and manufacturing. Additionally, it aims to build a scalable ecosystem by pursuing strategic investments, partnerships, and mergers and acquisitions for long-term global growth.
“Sakana AI’s unique determination to develop frontier AI technology sustainably, through innovation, aligns with our core values as Japan’s first ESG-integrated global VC fund investing in technologies that transform industries and society,” Kathy Matsui, general partner at MPower Partners, said.
Furthermore, this funding round has inflated Sakana AI's valuation to around $2.635 billion (400 billion yen), setting a new record for unlisted startups in Japan.
The amount raised is approximately double that of the Series A funding acquired in September of the previous year. The new resources will be allocated toward the development of Sakana AI's proprietary large language model (LLM).
Sakana AI’s LLM is designed to reflect the nuances of the Japanese language and culture, making it suitable for local industries. Until now, the startup has collaborated with entities such as MUFG and Daiwa Securities Group.
“For Japan, with a declining workforce and an ageing population, the benefits of AI technology are clear. Sakana AI is now entering its most exciting phase: deploying R&D into the business and public sectors,” the company said in a statement.
