AI Startups Sakana and Turing Secure Major Funding as Japan Emerges as a Global AI Hotspot
Japan’s artificial intelligence industry is experiencing a powerful surge, and two of its most promising startups just proved it. This week, Sakana AI and Turing Inc. together secured more than ¥35 billion (over $230 million), a clear sign that investors are increasingly confident in Japan’s growing role in the global AI race.
Major Funding Boost for Two Rising AI Innovators
Sakana AI Raises ¥20 Billion at a Multi-Billion Dollar Valuation
Sakana AI announced that it raised ¥20 billion, valuing the company at around $2.6 billion. The startup, known for its AI work with financial institutions, attracted investments from Mitsubishi UFJ Financial Group as well as new global backers like Factorial Funds, Macquarie Capital, and Santander’s Mouro Capital.
Co-founder David Ha noted that even though AI funding is skyrocketing, Japan stands to uniquely benefit from advanced AI as it faces an aging population and shrinking workforce.
Turing Inc. Raises ¥15.3 Billion From Major Auto Partners
Turing Inc., headquartered in Tokyo, revealed that it secured ¥15.3 billion, including a ¥5.5 billion syndicated loan. Investors include Denso Corp., a major Toyota supplier — signaling strong interest from the automotive sector.
This Series A funding round boosted Turing’s valuation to around $388 million, nearly quadrupling its value from a year ago. The company’s goal is ambitious: to build a fully self-driving automotive system based on advanced neural networks.
How Turing Plans to Compete With Global Self-Driving Leaders
Co-founded in 2021 by AI prodigy Issei Yamamoto — famous for creating an AI that beat Japan’s top shogi player — Turing has gathered a team of more than 50 elite AI engineers.
Yamamoto emphasizes that the biggest challenge isn’t the business model but perfecting the technology. Turing is working with Nvidia and aiming for what is known as end-to-end autonomous driving, similar to the approaches used by Tesla and Wayve.
The company plans to roll out autonomous driving systems in luxury vehicles by 2029 and hopes to have more than 10,000 vehicles using its AI by 2030. A banner in the office reads: “We Overtake Tesla” — capturing the bold ambition behind their mission.
Turing is also in discussions with multiple automakers and suppliers, including Denso, about future manufacturing partnerships.
Japan’s AI Momentum Comes at a Critical Moment
The surge in AI funding aligns with Japan’s broader economic strategy. Regulators want startups to grow stronger before going public and are pushing for more acquisitions and higher market-value thresholds. These policies, paired with increasing global demand for AI, are helping Japan become a more attractive destination for tech investment.
For Sakana AI and Turing Inc., this moment represents more than just large funding rounds — it marks a major step toward placing Japan at the forefront of global AI innovation.