Sakana AI Tops Japan Startup Valuations with $135M Series B

What happened

Tokyo-based AI developer Sakana AI completed a Series B funding round in November 2025, raising JPY 20 billion (approximately US$135 million). The funding round was led by Mitsubishi UFJ Financial Group (MUFG) and included participation from a U.S. venture capital firm linked to the CIA. This investment propelled Sakana AI to become Japan’s highest-valued startup.

Why it matters

• The funding enables Sakana AI to accelerate research and development focused on AI tailored to Japan’s specific needs.
• Sakana AI’s valuation now surpasses all other startups in Japan, marking a significant milestone in the country’s AI industry.
• Investment from major financial and international venture capital firms signals strong confidence in Japan’s AI technology sector.

Key facts

1. 1. Sakana AI raised JPY 20 billion (about US$135 million) in Series B funding in November 2025.
2. 2. The post-money valuation of Sakana AI reached approximately JPY 400 billion (around US$2.65 billion).
3. 3. Mitsubishi UFJ Financial Group led the funding round, joined by U.S. investors including a CIA-linked venture capital firm.
4. 4. Total funding raised by Sakana AI to date is around JPY 52 billion (approximately US$347 million).

Key Voices

• Sakana AI emphasized the investment will accelerate R&D to develop AI sustainably and optimize models for Japan’s unique requirements.
• Mitsubishi UFJ Financial Group participated as lead investor, underscoring its commitment to advancing Japan’s AI technology ecosystem.
• Not stated in the article.