🏭 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—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!
References
Reactions in Japan
Our factory is considering adopting Akari's AI. Their approach of interviewing floor workers before building systems is really important. Too many IT vendors build without knowing the field, and the systems end up unused
Profitability without external funding isn't normal. Japanese startups typically pursue growth assuming losses, so Akari's model is new. Though raising only from Mitsubishi Electric is also a risk
I use Digital Billder, and honestly thought 'another new system?' at first. But invoice processing time halved and rework decreased. Even the older guys on site say 'this is easy'
Starting a company as a 2nd-year undergrad is crazy when you think about it. A senior from Matsuo Lab went to Akari - apparently the pay is good and there's lots of autonomy. Torn between doing a PhD or joining a company like Akari
A ¥100 billion valuation doesn't mean anything to me. This has nothing to do with small factories like ours. It's for major contractors, right? Let me know when it becomes usable for SMEs
Smart that Akari chose Mitsubishi Electric for their first major funding. A corporate partner, not a VC. Looks like they're prioritizing M&A or business synergies over IPO as an exit. Very Japanese in a way
Construction DX felt like just buzzwords, but Akari seems to have steadily improved actual operations. Building track record without flashy PR is probably what led to this valuation
Among Matsuo Lab startups, Akari's presence is growing. Different approach from Preferred Networks or Sakana AI. The industry-specific plus field implementation path has high affinity with Japanese manufacturing
Pivoting to Embodied AI is the right call. Can't beat US/China on LLMs. But with robotics × AI for manufacturing improvement, Japan can leverage its manufacturing expertise. Competing on domain, not just tech
Akari has a full in-office policy. Rare in the remote work era. But growing to 415 people means they're still attracting talent. Must be a good environment for those who fit the culture
How many years until systems used by big Tokyo companies reach rural SMEs? I have hopes for Akari, but there are issues with implementation costs and operational support. We don't have people in the countryside either
Akari could be a research subject as a success model for university startups. Growing while maintaining profitability, raising from corporates not VCs, choosing industry specialization. A different path from the usual 'startup = growth with losses'
They say they'll have AI learn skills I've developed over 50 years, but it's not that easy. There's intuition that can't be quantified. Honestly skeptical whether a system made by young people can really capture that
Noro was born in '99, same as me, and he's built a ¥100B company. Makes no sense. But having Forbes 30 Under 30 winners as role models feels like it lowers the barrier to starting a business
The ¥100B valuation is reverse-calculated from Mitsubishi Electric's investment and stake. Not market-verified. Whether this valuation holds at IPO is another matter. Should also consider the Growth market conditions
The 5-year startup plan aims for 100 unicorns, but we need more companies like Akari for that. Still much to do - promoting partnerships with large companies, deregulation, etc.
In Silicon Valley, a $670M valuation in 5 years isn't unusual, but staying profitable without external funding is exceptional. Japanese startups seem to prioritize sustainability over growth. An interesting approach
Compared to Shenzhen manufacturing AI startups, Akari's growth speed seems modest. But partnering with a giant like Mitsubishi Electric should solidify their position in the Japanese market
Similar concept to Germany's Industrie 4.0. The challenge of reaching SMEs is also the same. Japan and Germany share similar struggles as manufacturing powerhouses
Indian IT companies often work on DX projects for Japanese manufacturing. As Japanese startups like Akari gain strength, they might become competitors. But there should be room for collaboration too
A 25-year-old founder of a $670M company would get attention in France's startup scene too. Surprising though, as I'd heard it's hard for young entrepreneurs to grow in Japan
Korea is also pushing university-originated startup support. But collaboration with chaebol like Samsung or LG can be difficult. The relationship between Akari and Mitsubishi Electric is instructive
Compared to Oxbridge spinoffs, Akari is notably focused on industrial applications. UK university ventures tend to be more basic research-oriented. Can't say which is better though
Vietnamese manufacturing has many Japanese company factories. If Akari's AI is implemented, it might be used on Vietnamese shop floors too. Looking forward to localization
Mexico has many Japanese auto factories too. Passing down skilled workers' expertise is a universal challenge. Hope to see Japanese solutions deployed globally
Taiwan's semiconductor industry is also advancing AI adoption. Collaboration between Japanese manufacturing AI startups and Taiwanese companies might become important in the US-China context
Canada has many AI startups too, but few specialized in manufacturing. Akari's approach might be difficult in Canada where the manufacturing base is weaker
Australia is advancing AI in mining. Akari's construction-focused approach could be applied to Australia's infrastructure investment boom
Dubai's construction boom continues. Japanese construction technology has a good reputation. Would be great if companies like Akari expanded to the Middle East
Poland is becoming an EU manufacturing hub. Collaboration with Japanese AI startups might boost Polish companies' competitiveness
Brazilian manufacturing needs modernization too. But Japanese AI solutions have an expensive image. If pricing becomes accessible for SMEs, the South American market could open up
Swedish companies like Volvo and Ericsson are also focusing on manufacturing DX. Tech exchange with Japanese companies should benefit both countries. Watching Akari's global expansion