Preferred Networks Inc., Japan’s leading AI research firm, raised an additional ¥5 billion ($35 million) from publishers, broadcasters and animation studios, bringing total funding to ¥24 billion ($168.3 million) since December. Media conglomerate Kodansha, broadcaster TBS, animation powerhouse Toei Animation, and financial institutions including Sumitomo Mitsui Trust Bank and Mitsubishi UFJ Trust Bank participated in this latest round completed by April 30.
The decade-old Tokyo-based unicorn, valued at over ¥300 billion, has rapidly emerged as Japan’s AI champion through its vertically integrated approach spanning semiconductors to foundation models. The funding will accelerate development of the company’s AI technologies, including its low-power MN-Core processors and Japanese-language PLaMo foundation model.
The involvement of content creators signals Japan’s entertainment industry embracing AI for production efficiency. Toei Animation has already deployed Preferred Networks’ Scenify tool, which converts photographs into animation backgrounds, reducing pre-processing time to approximately one-sixth of conventional methods. The studio has been collaborating with PFN since 2021 on background art production.
Kodansha, Japan’s largest publisher, aims to leverage PFN’s technologies to enhance editorial capabilities, while TBS plans to create innovative visual productions through AI integration. These partnerships reflect growing convergence between Japan’s technical expertise and creative industries as they face international competition.
Preferred Networks was established in 2014 and has previously secured investments from industrial giants including Toyota, Hitachi, and Mitsubishi Corporation. The company is reportedly planning to court overseas investors for future funding rounds as it accelerates its AI semiconductor development.
