Google Backs Japanese AI Startup Sakana to Expand Gemini's Reach in Japan
In a strategic move to bolster its artificial intelligence footprint in Japan, Google has joined the investor roster of Sakana AI, a prominent Japanese startup. This investment aims to strengthen the presence of Google's chatbot Gemini in a market that is increasingly eager to accelerate AI adoption across various sectors.
Strategic Investment Following Major Funding Round
The investment from Google comes after Sakana AI successfully closed a $135 million Series B funding round last year, which valued the startup at approximately $2.6 billion. While the exact amount of Google's investment has not been disclosed by Sakana, this partnership marks a significant step in the competitive AI landscape. Through this deal, Google gains the support of one of Japan's most valuable startups to promote Gemini, particularly in a corporate environment where it currently lags behind OpenAI's ChatGPT.
Mutual Benefits and Enhanced AI Capabilities
According to David Ha, co-founder and CEO of Sakana AI and a former Google Brain researcher, this collaboration will provide Sakana with greater access to Google's foundation models. "Having more access to more foundation models, especially from Google, will improve the performance of our products," Ha stated in an interview. This access is expected to enhance the reliability of Sakana's AI tools, especially for critical services, while simultaneously helping Google expand Gemini's influence in Japan's cash-rich corporate sector.
Sakana AI's Rapid Growth and Government Backing
Founded in 2023, Sakana AI has quickly established itself as a key player in Japan's AI ecosystem. The startup received a government-backed grant, reflecting Japan's ambition to develop AI solutions that are not solely reliant on US companies. Sakana has already made significant inroads into the finance sector, securing service contracts from major institutions such as MUFG Bank Ltd. and Daiwa Securities Group Inc. to build advanced AI tools. Backed by investors like Mitsubishi UFJ Financial Group Inc., Sakana is well-positioned to navigate the challenges of Japan's corporate landscape, where traditional business models often resist rapid technological change.
Future Expansion and Strategic Goals
Looking ahead, Sakana AI plans to deepen its collaboration with the Defense Ministry and other government agencies in 2026, in addition to expanding its enterprise client base and exploring overseas growth opportunities. Ha noted that Sakana may need to rely on domestic models for certain projects, particularly those involving sensitive sectors like defense. "If we do make progress in both defense and enterprises, if we do see success in these, we could require more capital," he added, hinting at potential future funding needs to support these ambitious initiatives.
This investment underscores the intensifying global AI race, with Google leveraging local partnerships to gain a stronger foothold in Japan's evolving technological landscape.
