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Preferred Networks

Category: AI Infrastructure

Japan's leading AI unicorn developing vertically integrated AI solutions from chips to applications, including the PLaMo family of Japanese-language LLMs, MN-Core AI processors, and industrial AI solutions. Preferred Networks was founded in 2014. The company is led by Daisuke Okanohara (岡野原 大輔). Based in 1-6-1 Otemachi, Chiyoda City, Tokyo. Team size: 201-500. Total funding raised: $308M. Latest round: Venture Round. Key investors include Toyota Motor Corporation; Fanuc; SBI Group; Development Bank of Japan; Mitsubishi Corporation; Sekisui House; Wacom; Kodansha; Mitsubishi UFJ Trust and Banking; Sumitomo Mitsui Trust Bank; TBS Innovation Partners; Toei Animation; Shin-Etsu Chemical; Sumitomo Life Insurance; NTT; Hitachi; Mizuho Bank; Resona Bank; Shoko Chukin Bank; MUFG Bank; Sumitomo Mitsui Banking Corporation; Chugai Pharmaceutical; Tokyo Electron; Hakuhodo DY Holdings; Mitsui & Co.; ENEOS Holdings.

Founded
2014
Headquarters
1-6-1 Otemachi, Chiyoda City, Tokyo
Team size
201-500
Total funding
$308M

Value proposition

Vertically integrated AI value chain — from proprietary AI chips (MN-Core series) and supercomputing infrastructure to generative AI foundation models (PLaMo) and industry-specific solutions — all developed in-house for Japanese and global enterprises.

Products and solutions

PLaMo Prime (flagship LLM); PLaMo Lite (edge SLM); PLaMo Translate (Japanese translation LLM); PLaMo-fin-base (finance-specialized LLM); MN-Core series AI processors (MN-Core, MN-Core 2, MN-Core L1000); MN-Server 2; Preferred Computing Platform (PFCP); Optuna (hyperparameter optimization framework); Matlantis (atomistic simulator via subsidiary); Kachaka (autonomous mobile robot via Preferred Robotics); MiseMise (chain store operational improvement); PFN 3D Scan

Unique value

Only company in Japan that vertically integrates the entire AI stack — from custom-designed AI semiconductors (MN-Core) and supercomputers (MN-3, #1 on Green500) to foundation models (PLaMo) and industry-specific solutions — enabling end-to-end optimization for real-world industrial AI applications.

Target customer

Large industrial enterprises in manufacturing, automotive, materials & chemicals, life sciences, finance, retail, entertainment, and public services; also government agencies and research institutions.

Industries served

Manufacturing; Automotive/Transportation; Materials & Chemicals; Life Sciences/Pharma; Entertainment/Media; Retail & Distribution; Finance/Banking; Public Services; Education; Enterprise

Technology advantage

Proprietary MN-Core AI processors achieving industry-leading energy efficiency (MN-3 ranked #1 on Green500 three times); full-stack vertical integration from chip to application; world-class Japanese-language LLM performance (PLaMo surpassing GPT-4 on Japanese benchmarks); deep industrial partnerships with Toyota, Fanuc, NTT, ENEOS, and others; strong IP portfolio in AI hardware and software.

How they differentiate

Unlike most AI startups that focus on a single layer (e.g., only LLMs or only chips), PFN is unique in its full vertical integration from custom silicon to applications. Competitors like Sakana AI focus on evolutionary model merging, while PFN builds everything from scratch. Compared to AI chip startups like Groq or FuriosaAI, PFN also develops its own foundation models and has deep industrial partnerships in manufacturing, automotive, and healthcare.

Main competitors

Sakana AI (Tokyo-based AI research startup); NEC (cotomi LLM); LLM-jp Consortium (academic consortium); Groq (AI inference chips); SambaNova Systems (AI hardware/software); FuriosaAI (Korean AI chip startup)

Key partnerships

Toyota Motor Corporation (R&D + investment); Fanuc (R&D + investment); NTT (capital & business alliance); NVIDIA (technology alliance); Microsoft (strategic cooperation); Intel (Chainer development); Samsung Electronics (2nm chip fabrication); ENEOS (AI-based autonomous refinery operations); National Cancer Center Japan (healthcare AI); Snowflake (PLaMo on Marketplace); Amazon Web Services (Bedrock Marketplace); SBI Group (capital alliance); Mitsubishi Corporation; Development Bank of Japan

Notable customers

Toyota Motor Corporation; Fanuc; ENEOS; National Cancer Center Japan; Chugai Pharmaceutical; multiple Japanese financial institutions; over 150 local governments in Japan (via QommonsAI)

Major milestones

2014: Founded; 2015: Released Chainer open-source deep learning framework; 2017: Launched one of Japan's most powerful private supercomputers; 2018: Unveiled MN-Core AI processor; 2020: MN-3 supercomputer ranked #1 on Green500 (achieved 3 times); 2021: Established Preferred Robotics subsidiary; 2023: Released PLaMo-13B open-source LLM; 2024: Launched PLaMo Prime flagship LLM, PFCP cloud service, MN-Core 2; 2024-2025: Raised ~¥24B+ in latest funding round; 2025: PLaMo wins GENIAC awards; 2026: Launched PLaMo 2.2 Prime and PLaMo Translation on Snowflake Marketplace; 2026-06: PLaMo-VL wins GENIAC (3rd round) Model Prize

Growth metrics

Revenue: ¥8,486 million (~$56M) as of FY ending Jan 2021; ~280-340 employees as of 2025-2026; valuation >300 billion yen (~$2B+)

Market positioning

Japan's most valuable AI unicorn (valuation >300 billion yen / ~$2B+), positioned as the national champion for Japanese-language AI and industrial AI transformation. Competes globally in AI chips (energy-efficient inference) and foundation models (Japanese-language leadership), while dominating the Japanese enterprise AI market through deep industrial partnerships.

Geographic focus

Japan (primary); expanding globally through partnerships (Samsung for chips, Snowflake for cloud deployment)

Patents and IP

MN-Core AI processor architecture patents; Chainer deep learning framework (open source, now transitioned to PyTorch); Optuna hyperparameter optimization framework (open source); PLaMo LLM family (proprietary); multiple patents in AI hardware acceleration and deep learning.

About Daisuke Okanohara (岡野原 大輔)

Co-founder of Preferred Infrastructure (2006); Ph.D. in Computer Science from University of Tokyo (2010); CTO of Preferred Networks before becoming CEO in Nov 2025; also CEO of Matlantis Corporation

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