Toei and Kodansha Make Major AI Investment Moves

Japanese tech company Preferred Networks (PFN) has announced a new investment round totaling ¥50 billion, further solidifying its status as a leader in artificial intelligence (AI) research and development in Japan. The funding round was finalized by April 30, 2025, and included backing from major players in the publishing, media, and financial sectors.

Toei and Kodansha Make Major AI Investment Moves

With this new round, Preferred Networks has now raised a total of ¥240 billion since its founding in 2014—¥190 billion of which was secured by December 2024. PFN is known for the practical application of cutting-edge technologies like deep learning and generative AI models, gaining recognition as one of Japan’s most promising AI companies.

This latest funding came not only from banks and financial institutions, but also from content and entertainment companies seeking to integrate AI into their operations. Key investors include:

• Kodansha, one of Japan’s largest publishing houses
• Toei Animation, the legendary anime studio behind Dragon Ball and One Piece
• TBS, a major TV broadcaster also active in venture capital
• Sekisui House, a leading real estate company
• Sumitomo Mitsui Trust Bank and Mitsubishi UFJ Trust Bank, through capital investment
• Mizuho Bank, which provided new credit lines

Strategic Partnerships Aim to Merge AI with Creative Industries

This funding round highlights a growing interest from creative industries in PFN’s AI capabilities. Toei Animation, for example, has already been collaborating with PFN since 2021 on the development of Scenify, a tool designed to support background art creation in animation. With the new investment, this partnership is expected to deepen, with even plans for a joint venture under consideration.

PFN’s AI solutions are expected to streamline animation production, lowering costs and turnaround times by automating repetitive tasks and optimizing creative workflows.

Kodansha sees PFN’s technology as a way to transform editorial content creation, combining technological innovation with editorial creativity. Meanwhile, TBS aims to utilize AI to revolutionize audiovisual production, blending human creativity with automated processes for greater efficiency.

Vertical Integration as a Competitive Edge

Preferred Networks is heavily investing in the creation of a fully integrated AI ecosystem, covering everything from generative models and computing infrastructure to the development of AI-specific semiconductors. This vertically integrated approach enables PFN to deliver more efficient, tailored solutions with full control over its technology pipeline.

With fresh capital, the company plans to accelerate the development of next-generation technologies and expand both domestically and internationally.

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