As tensions rise between the U.S. and China, Japan is bolstering its artificial intelligence capabilities, and Tokyo-based startup Sakana AI is positioned at the center of this shift.
With backing from tech giant Nvidia, Sakana AI is rapidly emerging as a key player in Japan’s growing AI ecosystem.
In less than a week, Sakana AI made headlines by announcing a $137 million Series A funding round with Nvidia as one of the major investors.
This pushed Sakana AI’s valuation to over $1 billion, solidifying its status as a unicorn just months after its founding in July 2023. This rapid rise makes Sakana the fastest startup in Japan to achieve unicorn status, marking a significant milestone for the country’s AI industry.
Co-founder and CEO David Ha, a former Google Brain researcher, highlighted the startup’s focus on small, energy-efficient AI models. “Japan, with its limited resources, is exploring more efficient ways to advance its AI sector, and we want to be part of that,” Ha said in an interview with Bloomberg TV. The company's unique approach—using multiple smaller models instead of one large foundational model—has garnered significant interest in Japan, a nation heavily reliant on energy imports.
The recent funding provides Sakana AI with the resources to further its research, particularly in collaboration with Nvidia on AI infrastructure and data centers in Japan. Nvidia's investment underscores the growing importance of AI in Japan’s tech landscape.
Nvidia’s CEO Jensen Huang expressed his admiration for Sakana’s approach to AI, particularly its power-efficient, small-scale generative AI models tailored to Japan’s needs. “Countries are embracing sovereign AI to capture and codify their data, culture, and language through their unique models. Sakana AI is driving the democratisation of AI in Japan,” Huang said.
In January Sakana raised 4.5bn yen from NTT Group, Sony Group, Khosla Ventures and others.
With Nvidia now a major shareholder, Sakana AI’s future looks promising as it continues to develop innovative AI products while contributing to the advancement of Japan’s AI ecosystem. This partnership signals a new era for Japan’s AI ambitions, as the country seeks to reduce reliance on foreign technologies amid rising geopolitical tensions.
