Gemini vs OpenAI: Google bets on Sakana AI for Japan push

Google has invested in Japanese startup Sakana AI in a move to strengthen Gemini’s presence in Japan where OpenAI holds dominance in artificial intelligence.

The tech giant’s investment follows a $135 million Series B round that put Sakana AI’s valuation at $2.6 billion. However, the exact amount of the latest investment is still unknown.

Under this investment, Google aims to use Sakana’s influence and expertise to enhance the reach of Gemini in Japan’s cash-rich corporate sector.

This move also gives competitive edge to Gemini in the landscape which is already catering to Sam Altman’s OpenAI and ChatGPT.

OpenAI officially opened its first Asian office in Tokyo in April 2024. Since then it has rapidly expanded its operations, partnerships, and customized technology for the Japanese market.

In exchange, Sakana will gain model access by tapping into Alphabet’s advanced language models to develop new products.

According to David Ha, the startup’s co-founder and chief executive officer, the investment will also enhance reliability in critical services.

“Having more access to more foundation models, especially from Google, will improve the performance of our products,” said Ha, a former Google Brain researcher, in an interview.

AI race in Japan

The AI race in Japan’s corporate sector is wide open because of companies’ reluctance to change their business models.

Sakana won a government-back grant to develop AI based on its language and data, thereby reducing reliance on US-based technology and developing sovereign AI push.

Since its founding in 2023, Sakana has secured financial backing and service contracts from various groups, including Mitsubishi UFJ Financial Group Inc. (MUFG), MUFG Bank Ltd. and Daiwa Securities Group Inc.