A "hidden unicorn" that achieved profitability from day one without any external funding for five years has finally stepped into the spotlight. University of Tokyo AI startup "Akari" (燈) just raised ¥5 billion ($33 million) from Mitsubishi Electric, sending shockwaves through Japan's startup scene with a valuation exceeding ¥100 billion ($670 million).

The Matsuo Lab Spinoff That's "Growing Exceptionally Fast"

On January 29, 2026, Akari Inc., an AI startup spun out of the University of Tokyo, announced it had raised ¥5 billion through a third-party allotment of shares with Mitsubishi Electric as the subscriber. The company's pre-money valuation reached ¥100 billion, putting it just one step away from unicorn status (privately held companies valued at $1 billion or more).

Akari was founded by Yuki Noro, who was a second-year engineering student at the University of Tokyo at the time. A prodigious talent who won a special jury award at a hackathon in his first year of high school, Noro studied AI research under Professor Yutaka Matsuo at the prestigious Matsuo-Iwazawa Laboratory before establishing Akari in February 2021.

Professor Matsuo has endorsed the company, stating that "among all the startups that have emerged from the Matsuo Lab, Akari is growing exceptionally fast." Indeed, in just five years since its founding, the company has expanded to 415 employees and partnered with over 1,000 companies.

Choosing "Industry-Specific AI" Over "General-Purpose AI"

Akari's growth has been driven by a thorough commitment to understanding real-world operations. During his time as a student, Noro aspired to develop AI that would strengthen Japanese industry, focusing on industry-specific AI rather than large-scale general-purpose models.

The company particularly targeted the construction industry, which faces severe labor shortages. Noro personally visited construction companies and contractors, developing AI tools based on direct feedback about on-site challenges. This "close-to-the-field AI" approach gained traction, leading to adoption by major general contractors including Taisei Corporation, Daiwa House Industry, Haseko Corporation, and Toda Corporation.

One of their flagship services, "Digital Billder," is an invoice processing DX system for the construction industry that digitizes analog paper workflows and dramatically improves site management efficiency. They've also developed industry-specific AI products like "Hikari" for construction and "Takumi" for manufacturing.

The Unusual Achievement of "Profitability Since Founding"

Akari possesses a rare characteristic in Japan's startup ecosystem: the company has maintained profitability since its founding. In October 2025, it even joined Keidanren (Japan Business Federation), which requires companies to have net assets of at least ¥100 million and no net losses for three consecutive fiscal years.

The ¥5 billion from Mitsubishi Electric marks the company's first major external funding for business operations. This ability to grow without relying on outside capital is precisely why the company has been called a "hidden unicorn."

Partnership with Mitsubishi Electric for "Next-Generation Industrial OS"

With this funding, Akari will accelerate its business collaboration with Mitsubishi Electric. Specifically, they'll develop "Physical AI" capable of fully automating factory operations.

Mitsubishi Electric holds a globally competitive position in FA (Factory Automation) systems, possessing vast amounts of real data from manufacturing sites and domain knowledge for controlling equipment. Meanwhile, Akari has cutting-edge AI algorithm development capabilities and the ability to quickly turn them into working implementations.

The two companies will combine Mitsubishi Electric's "power to move the field (physical assets)" with Akari's "power to add intelligence (AI assets)" to develop a "next-generation industrial OS" that will serve as the brain of unmanned, autonomous factories of the future.

"Our strength lies in technology that captures the skills of craftsmen and skilled workers and translates them into AI and robots," says Noro. "We want to digitize and AI-ify Japan's production technologies to enhance the competitiveness of the entire nation."

Where Japan's Startup Ecosystem Stands Today

Akari's rise is also encouraging news for Japan's startup ecosystem. In 2022, the government formulated the "Startup Development Five-Year Plan," aiming to expand investment in startups to ¥10 trillion by fiscal 2027 and create 100 unicorn companies.

However, reality remains challenging. As of 2025, Japan is estimated to have approximately 20 unicorn companies, far short of the 100-company target. Compared to approximately 700 in the United States and 170 in China, the gap is stark.

What makes Akari stand out isn't just its high valuation. Despite being a university-originated venture, it has maintained profitability since founding and is actually transforming industries through collaboration with large corporations. The company's commitment to pursuing "AI that works in the field" rather than "theoretical technology" has been key to its rapid growth.

The Dawn of the "Embodied AI" Era

Currently, the global AI trend is shifting toward "Embodied AI" that governs the physical world. As the next frontier after large language models like ChatGPT, AI that controls robots and machinery is attracting attention.

Akari is positioned at the forefront of this movement. The company employs numerous robotics engineers who conduct daily verification tests using actual machines. Their hallmark is pushing AI implementation into physical spaces rather than confining it to the digital realm.

The ¥5 billion in funding will be used to strengthen the engineering team supporting AI implementation and for M&A of companies with related technologies.

"Becoming the Light That Illuminates Japan"

The company name "Akari" (燈) embodies Noro's vision. The kanji character consists of "fire" and "climb," conveying two meanings: "burning with passion and climbing to the top" and "illuminating industry through technology."

"Japanese economic news is mostly gloomy, and everyone feels the country is declining," Noro explains. "The three of us who founded Akari didn't want to just bemoan Japan's situation, and we wanted to become 'heroes' who could revitalize the nation."

At 25 years old, Noro stands as the founder of what's approaching unicorn status. Named to "Forbes JAPAN 30 Under 30 2022," this young leader's journey to illuminate Japanese industry is just beginning.

In Japan, the rapid growth of university-originated startups and collaborations between large corporations and startups are making headlines. What's the startup ecosystem like in your country? If you have examples or opinions about university ventures or industry-academia partnerships in your region, we'd love to hear them!

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