Nvidia Corporation (NVDA) is set to become a major shareholder in Sakana AI, a Tokyo-based startup revolutionizing the generative AI landscape. This news comes as Sakana AI successfully closed its Series A funding round, raising an impressive 20 billion yen (approximately $137 million).
Nvidia appears to be the leading contributor to this funding round, according to Nikkei Asia. Sakana AI, founded in July 2023, has achieved unicorn status in record time, becoming the fastest Japanese startup to reach this milestone. Their focus lies in developing cost-effective and energy-efficient small-scale generative AI models, a stark contrast to the larger models offered by companies like OpenAI and Google.
Nvidia’s investment goes beyond financial support. The partnership includes collaborative efforts in research, development, and AI talent training in Japan. Nvidia’s CEO, Jensen Huang, emphasized the significance of this investment, stating that Sakana AI is playing a vital role in democratizing AI access in Japan by developing cutting-edge foundation models that leverage Nvidia’s accelerated computing platform to automate and expedite scientific discoveries.
Other prominent investors participating in this funding round include U.S.-based venture capital firms New Enterprise Associates, Khosla Ventures, and Lux Capital. Earlier this year, Sakana AI secured approximately 4.5 billion yen from NTT Group, Sony Group, and other investors.
This investment arrives amidst a period of stock volatility for Nvidia, which has experienced a significant decline in market capitalization. However, despite the downturn, the potential of AI continues to inspire optimism, as evidenced by Deepwater Asset Management’s managing partner Gene Munster.
Nvidia’s strategic investment in Sakana AI underscores its commitment to expanding its presence in the AI domain. This move, coupled with previous acquisitions such as Shoreline.io and Run:ai, signifies Nvidia’s proactive approach to strengthening its AI capabilities and reducing dependence on major revenue sources like Microsoft and Amazon.
