Citi has made a strategic investment in Sakana AI, a Tokyo-based AI R&D company.

The investment was made by the Markets Strategic Investments unit, which invests in innovative fintech and enterprise tech companies globally that are strategically aligned to Citi’s Markets division. The investment marks Citi’s first in Japan and is a testament to Sakana’s demonstrated strong commercial traction and advanced technical capabilities.

Sakana AI is focused on developing new kinds of foundational models and enterprise-grade AI solutions by using nature-inspired intelligence. The company has consistently focused on enhancing operational efficiencies across various industries by bridging the gap between cutting-edge research and practical business applications.

The milestone deal demonstrates how AI companies and banks can collaborate to innovate financial services. Sakana AI has a proven track record of working with financial institutions to develop highly specialized AI models for financial domains. This investment from Citi aims to further accelerate Sakana AI’s international expansion and drive innovation in global financial services, originating from Japan.

“As a leading AI company in Japan, Sakana AI is driving innovation across the Japan market. We are proud to support their journey and look forward to providing value-add opportunities as they expand their financial services product offering,” said Robert Nakamura, Citi Country Officer and Banking Head for Japan.

“We are honored to receive this strategic investment from Citi, which we believe is a testament to Sakana AI’s technological capabilities and our track record in the financial sector. Leveraging our expertise in applying frontier AI within specialized financial domains, we look forward to working with Citi to transform global financial services,” said David Ha, CEO of Sakana AI.

“Sakana AI has developed a unique and robust offering that have enabled them to develop a strong foundation and proven product market fit in Japan. We’re excited to invest in Sakana AI as they further cement their position in Japan and expand globally,” said Siris Singh, Global Head of Markets Strategic Investments.

Through investments in start-ups and early-stage companies, Markets Strategic Investments promotes the development and adoption of new technologies and solutions to drive innovation for Citi and its clients.