Tokyo Startup Sakana AI Secures $30M to Pioneer Innovative Compact AI Models

Sakana AI, a Tokyo-based startup co-founded by two former Google engineers, has successfully raised $30 million in seed funding from prominent technology investors. Founded just last year, Sakana AI is pioneering a unique approach to artificial intelligence by creating smaller, more efficient models inspired by natural phenomena.

The funding round was led by Lux Capital, known for investing in innovative AI companies like Hugging Face, and Khosla Ventures, which was an early supporter of OpenAI in 2019. Additionally, major Japanese tech firms Sony, NTT, and KDDI participated, demonstrating robust support for Sakana from leading domestic players.

Sakana, meaning "fish" in Japanese, draws inspiration from the collective behaviors of animal groups, such as schools of fish and flocks of birds. The startup posits that smaller AI models working collaboratively can outperform larger models developed through traditional methods that rely on massive datasets.

Co-founders David Ha and Llion Jones previously led AI research at Google, where Jones co-authored the influential 2017 Transformer model paper that informs the functionality of chatbots like OpenAI's ChatGPT.

In a landscape where the AI industry often prioritizes scaling up models to achieve high benchmarks, Sakana’s concept offers a refreshing alternative. While larger models have shown impressive results, they have also faced criticism for the extensive computing resources and environmental impact they necessitate.

Sakana's leadership contends that as models grow, they become less efficient. Instead, smaller, specialized models can work together, analogous to teams where individuals with varied skills collaboratively outperform a single expert handling complex tasks.

The high-profile backgrounds of Sakana’s founders and their innovative vision have attracted substantial funding from both Silicon Valley and Japanese investors, establishing the company’s Tokyo lab after just one year of independent operations. Armed with new capital and partnerships with industry leaders like NTT, Sakana aims to expand its team and enhance its nature-inspired AI methodologies.

This early-stage investment from U.S. and Japanese tech giants signals confidence that Sakana could redefine AI development in Asia, potentially positioning Japan as a key player in a strategic technology sphere historically dominated by the U.S. and China.