MPower Partners Fund II (“MPower”), a Japan-based global venture capital fund, has invested in Sakana AI, a Tokyo-based company redefining frontier AI through resource-efficient research and mission-critical deployments for Japan’s private and public sectors.

As global AI competition accelerates under a “bigger is better” mindset, the pursuit of ever-larger models and massive compute resources has raised growing concerns about sustainability and long-term viability. Sakana AI is charting a different course—pursuing high performance with less compute, and building domain-specific systems tailored to Japan’s language, regulations, and societal needs. Founded by a team of world-class researchers and engineers, the company is establishing a new AI development paradigm, focused on sustainability, security, and real-world impact.

Guided by the mission “To develop transformative AI that will bring us into the next paradigm,” Sakana AI conducts both foundational research and applied development from its Tokyo headquarters. Drawing on principles of natural evolution, the team has introduced innovative architectures and methods that enable AI models to collaborate and self-improve, such as the Evolutionary Model Merge technique and the Darwin Gödel Machine (DGM). These advances power efficient architectures, post-training specialization, and multi-agent workflows that accelerate discovery and deployment.

Sakana AI already partners with Japan’s leading enterprises, including Mitsubishi UFJ Financial Group and Daiwa Securities Group, to co-develop highly-specialized AI solutions in finance, and is expanding into other strategic sectors, including defense and manufacturing, to support Japan’s broader industrial transformation. 

By adopting a post-training paradigm, Sakana AI aims to deliver “Sovereign AI”—frontier-level systems optimized for Japan’s cultural context, values, and social norms—offering a sustainable alternative to the global “bigger is better” arms race.

This investment is among the early portfolio additions of MPower Partners Fund II, which completed its first close in May 2025. Sakana AI’s sustainable innovation and commitment to practical AI deployment align directly with MPower’s core investment themes of “Japan Dynamism” and tech-enabled sustainable living, strengthening Japan’s competitiveness and resilience while advancing responsible innovation.

Comment from David Ha, Co-founder and CEO of Sakana AI

The current AI race, built on the assumption of near-limitless resources, is not the right path for Japan. At Sakana AI, we believe true intelligence isn't about brute-force scale; it's about doing more with less, just as nature does. We were founded on the principle that innovation comes from constraints, pioneering a sustainable, innovation-first approach with nature-inspired AI to solve real-world problems—from Japan's aging population to its declining workforce.

We are honored to partner with MPower Partners, a firm that not only shares our core values but deeply understands the critical link between technology, sustainability, and societal transformation. This investment will accelerate our mission to deliver sustainable AI solutions for Japan's future.

Comment from Kathy Matsui, General Partner at MPower Partners

“Sakana AI unites top researchers and engineers from around the world and, from Japan, is uniquely advancing the next evolution of AI with a clear vision to build Sovereign AI. Its technologies already help Japan’s leading enterprises and public institutions tackle their most pressing challenges. The company’s unwavering commitment to sustainably developing frontier AI—rooted in social and environmental responsibility—strongly aligns with MPower Partners’ themes of Japan Dynamism and building a sustainable society through technology. As Japan’s first ESG-integrated global VC investing in technologies that transform industry and society, we are excited to partner closely with Sakana AI to support its growth and accelerate real-world deployment.”

About Sakana AI

CEO: David Ha, 

Established: July 2023

Location: 15F, Toranomon Hills Business Tower, 1-17-1 Toranomon, Minato-ku, Tokyo, Japan

Corporate URL: https://sakana.ai/

About MPower Partners

MPower Partners is a Japan-based venture capital fund with a mission to empower visionary gamechangers and unlock transformative growth. With our diverse investment team and deep global networks, we identify and support high-potential ventures both in Japan and internationally. We go beyond capital investments by helping drive true and sustainable growth among our portfolio startups via our proprietary ESG framework. On a broader level, as bridge-builders and ecosystem shapers, we hope to leave the Japanese venture capital ecosystem better than we found it, one with more diversity and scale.

Fund website: https://www.mpower-partners.com

For inquiries, please contact: info@mpower-partners.com

This press release has been prepared for the purpose of providing information to qualified institutional investors and potential portfolio companies of the Fund, and is not a disclosure document pursuant to the Financial Instruments and Exchange Act, and does not constitute a solicitation or recommendation to purchase the Fund.