Nvidia Invests $100M in Sakana AI's Tokyo-Based Startup

Nvidia Invests $100 Million in Japanese AI Startup Sakana AI

Nvidia Corporation (NASDAQ: NVDA) has participated in a funding round exceeding $100 million for Sakana AI, a Tokyo-based startup specializing in artificial intelligence. This investment marks one of Nvidia’s significant moves in Japan’s emerging AI sector.

Founded in 2023 by former Google engineers, Sakana AI has successfully secured Series A funding led by prominent venture capital firms. The startup plans to collaborate with Nvidia on research, data center access, and initiatives to foster the AI community in Japan.

Sakana AI, which translates to "fish" in Japanese, focuses on developing low-cost generative AI models using smaller datasets. This approach has already resulted in several AI models tailored for Japanese speakers, showcasing the rapid advancement capabilities within the local AI market.

Nvidia’s CEO, Jensen Huang, highlighted the importance of Sakana AI’s work in advancing AI technology in Japan. Nvidia, known for its advanced accelerator chips that are crucial for generative AI development, has been increasing its investments in startups since 2023.

Huang noted, “Countries are adopting Sovereign AI to capture and preserve their data, culture, and language through unique large language models. Sakana AI is contributing to the democratization of AI in Japan by developing cutting-edge foundation models.”

Japan is increasingly becoming a focal point in the global AI landscape. For instance, significant investments are being made to enhance the country’s data centers and cloud computing infrastructure. Major tech companies are also forming partnerships with Japanese firms to advance generative AI.

Sakana AI’s funding and strategic collaboration with Nvidia will focus on building a world-class AI research facility in Japan. The company aims to address national challenges such as a declining population, decreased competitiveness, and geopolitical tensions.

The startup’s innovative approach involves algorithms that automate AI model creation through natural selection principles, thereby minimizing human intervention. This contrasts with the methods used by leading AI companies that rely on extensive datasets and substantial financial resources.

Sakana AI’s efforts are expected to contribute to Japan’s competitive edge in AI development. The collaboration with Nvidia will also include organizing events, hackathons, and university outreach to further develop Japan’s AI community.