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Sakana AI Secures $135M Series B, Targeting Sovereign AI in Japan

Artificial Intelligence Startups Japan Venture Capital AI Models Sakana AI Funding
November 17, 2025
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Article Summary

Sakana AI, founded in 2023 by former Google researchers, is carving out a niche in the rapidly expanding AI market by focusing on tailored generative AI models optimized for the Japanese language and culture. This Series B round, led by investors including Mitsubishi UFJ Financial Group (MUFG) and Khosla Ventures, brings the company’s total funding to approximately $379 million. The company’s approach contrasts with the large-scale model development efforts of global giants like Google and OpenAI. Sakana's strategy centers on efficiently building advanced models *after* foundational LLMs are trained, enabling a faster, more targeted development process. The funding will be used to expand the company’s engineering, sales, and distribution teams within Japan, as well as further R&D into AI products. Sakana’s ambitions extend beyond finance, with plans to penetrate industrial, manufacturing, and government sectors in 2026, eventually including the defense, intelligence and manufacturing sectors. The company's leadership, led by David Ha, emphasizes a commitment to ‘national cultures and values’ and to strategic investments, partnerships, and potential M&A activity for global expansion.

Key Points

  • Sakana AI secured a $135 million Series B funding round, valuing the company at $2.65 billion.
  • The company’s focus is on developing AI models tailored to the Japanese language and culture, differentiating itself from the global race for large language models.
  • Sakana’s strategy involves building upon existing LLMs rather than starting from scratch, aiming for faster and more efficient model development.

Why It Matters

This funding round signals a growing trend towards localization and sovereignty in the AI landscape. As nations seek to control and adapt AI technology to their specific needs and values, companies like Sakana AI are uniquely positioned to capitalize on this demand. The emphasis on ‘national cultures and values’ is particularly significant, reflecting a broader discussion about the ethical and societal implications of AI development and deployment. This represents a strategic shift towards AI solutions that are not only powerful but also aligned with local contexts, with implications for global tech trends and investment strategies.

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