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Amuse Backs AI Anime Startup as Japan Battles Creator Shortage

Entertainment firm joins ¥450 million funding for technology that's dividing the industry
Japan
a 4301.TSE Entertainment 100
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Japanese entertainment company Amuse has invested in KaKa Creation, an AI-driven anime producer, as the sector grapples with severe labor shortages that have hampered output. The Tokyo-based startup raised approximately ¥450 million ($3 million) from nine investors, including SMBC Venture Capital, Dentsu Ventures, and MIXI.

KaKa Creation’s approach—which it calls “Supportive AI”—uses generative technology for anime production, with its recent project “Twins HinaHima” created using AI for 95% of its content. The company positions artificial intelligence as a tool to assist creators rather than replace them, using 3D models and algorithms to speed production while humans handle final adjustments.

Japan’s anime industry faces chronic understaffing linked to poor working conditions and low wages, with studios struggling to find enough animators, directors, and production staff to meet surging global demand. A recent industry survey found that while annual revenue reached $2.45 billion, more than a third of production companies reported expenses exceeding revenues.

The technology remains contentious. KaKa Creation’s AI-generated anime has drawn criticism from creators who question whether the approach sacrifices artistic quality and could threaten jobs. Amuse, which manages artists and produces content, said the investment aligns with its focus on developing original intellectual property for anime and manga markets, though it expects the collaboration will require significant development to prove viable.

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