NVIDIA-Supported AI 'Rising Star' Sakana Expands Strategic Partnerships in Japan

The Future of Japan and Artificial Intelligence: The Rise of Sakana AI

Amid escalating international political tensions, Sakana AI is stepping boldly onto the path of developing a unique artificial intelligence ecosystem in Japan. This Tokyo-based startup has recently garnered significant attention from strategic investors.

David Ha, the co-founder and CEO of Sakana, noted that increasing geopolitical risks have heightened interest in the company. Last week, Sakana AI successfully raised over $100 million in funding, led by Envision Investment, Emerging Capital, and Lux Capital, with NVIDIA also participating. This represents NVIDIA's largest investment in the Japanese AI sector to date.

According to reports, Sakana AI raised approximately ¥20 billion (around $137 million) in its Series A funding. NVIDIA's investment falls between several billion yen (approximately tens of millions of dollars), making it the primary investor and a major shareholder in Sakana AI. With this funding round, the company's valuation is expected to exceed $1 billion.

In a statement on September 4, Sakana AI outlined its ambition to establish a "world-class artificial intelligence laboratory" in Japan to tackle challenges such as declining population, decreasing competitiveness, and geopolitical tensions faced by Japan and its allies. David Ha also noted that Sakana will collaborate with NVIDIA to develop AI infrastructure, including data centers.

Reportedly, the two companies will focus on designing new technologies to effectively develop foundational models, ensuring Japan maintains a competitive edge in AI development using NVIDIA's latest technologies. They also aim to foster the Japanese AI community through events, hackathons, and university outreach programs.

NVIDIA's founder and CEO, Jensen Huang, expressed support for this initiative: "Countries are advancing sovereign AI by capturing and curating their data and culture through unique large language models." He emphasized that the Sakana AI team is accelerating scientific discovery in Japan by developing advanced foundational models on NVIDIA’s computing platform.

Ha further stated, "As a powerful economy, Japan naturally seeks to build its own AI ecosystem, and we aim to contribute to this effort." He added that the recent funding provides ample resources for the company's technological development.

Sakana AI focuses on multiple collaborative models rather than a single large foundational model, which has piqued interest in resource-limited Japan. This island nation, heavily reliant on energy imports, is actively exploring more energy-efficient ways to leap forward in the AI sector.

The Japanese market has warmly welcomed this joint venture, which consists of around 20 employees. Among its co-founders, David Ha previously helped establish the Google Brain research team in Tokyo, while Llion Jones is noted for authoring key papers in the current AI wave.