Google has invested in Japanese startup Sakana AI to increase the adoption of the Gemini chatbot in Japan. The move highlights Google’s focus on expanding artificial intelligence services in one of Asia’s most important technology markets. The company has not revealed the scale of investment, but the partnership holds strategic value for both sides.
The investment comes after Sakana AI raised $135 million in a Series B funding round last year. This round valued the startup at nearly $2.6 billion. Sakana AI has emerged as one of Japan’s most valuable and fast-growing AI companies since its launch in 2023.
Gemini gains stronger local support in Japan’s enterprise sector through this Google investment. Many Japanese companies prefer trusted domestic partners when adopting new technology. Sakana AI already works with major financial firms, including Mitsubishi UFJ Financial Group and Daiwa Securities. These partnerships give Sakana a strong position in Japan’s finance industry.
For Sakana AI, the deal provides access to Google’s advanced AI models, including Gemini. The startup plans to use these models to improve product quality and reliability. Strong performance matters for services used in banking, security, and other critical sectors. Sakana’s leadership believes access to multiple foundation models will help build better tools for Japanese businesses.
Japan’s AI market still shows caution in changing long-standing business systems. Many companies operate on decades-old models. This slow pace has kept the Japanese AI market open for growth. Google sees an opportunity to grow Gemini adoption by working with a local company that understands these challenges.
Sakana AI also benefits from government support. The startup secured a state-backed grant focused on building AI that works well with the Japanese language. Authorities want domestic AI development instead of full reliance on foreign technology. This goal aligns with Sakana’s mission to create localized AI solutions.
The company plans to expand its work with government bodies, including Japan’s Defense Ministry. These projects often require strict data rules. In some cases, Sakana may avoid using foreign AI models. If enterprise and defense projects grow together, the startup may seek more funding in the future.
The partnership strengthens Google’s presence in Asia and improves Gemini’s image in competitive markets. OpenAI’s ChatGPT already holds strong recognition. Google aims to close that gap by combining global technology with local expertise.
This collaboration reflects a broader shift in AI strategy. Global technology companies increasingly rely on regional partners to drive adoption. Google and Sakana AI now share a common goal. Both aim to shape the future of AI in Japan through trusted, reliable, and locally adapted solutions.
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