Sakana AI Raises $135 Million Series B at $2.65 Billion Valuation

Tokyo-based Sakana AI has raised ¥20 billion (approximately $135 million) in a Series B funding round, bringing its valuation to $2.65 billion. The funding includes participation from both new and existing investors, such as Mitsubishi UFJ Financial Group (MUFG), Khosla Ventures, Macquarie Capital, New Enterprise Associates, Lux Capital, MPower Partners, and In-Q-Tel.

Founded in 2023 by former Google researchers Llion Jones, Ren Ito, and David Ha, Sakana AI develops generative AI models optimized for the Japanese language and culture. The company focuses on building efficient, sustainable AI systems that perform well on smaller datasets, emphasizing post-training model optimization rather than large-scale foundation model development.

The new capital will be used to accelerate research into self-evolving AI architectures, including models like the Darwin Gödel Machine and the Continuous Thought Machine, which explore new approaches beyond transformer-based systems. Sakana AI also plans to expand its applied AI division, deepening collaborations in Japan’s financial sector and extending into defense, intelligence, and manufacturing.

Sakana AI stated that it will pursue strategic partnerships, investments, and acquisitions to support long-term global growth while continuing to develop AI solutions tailored to Japan’s societal and industrial needs.