Preferred Networks, Inc.

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Preferred Networks, Inc. - overview

Established

2014

Location

Tokyo, -, Japan

Primary Industry

Software

About

Based in Japan, Preferred Networks, Inc. specializes in artificial intelligence technologies, delivering integrated AI solutions across multiple sectors such as retail, healthcare, and manufacturing. Founded in 2014 and headquartered in Tokyo, Japan, Preferred Networks, Inc. (PFN) focuses on advanced AI technologies.


The company has engaged in 13 investment deals, with its latest funding round on June 30, 2025, where it raised JPY 10,000. 00 mn from SBI Holdings. The CEO, Toru Nishikawa, leads PFN in its mission to innovate in AI solutions. Preferred Networks, Inc.


(PFN) operates at the forefront of artificial intelligence (AI) technology, offering a robust vertical integration of the AI value chain through four primary product categories: AI semiconductors, computing infrastructure, generative AI foundational models, and AI solutions/products. The company’s AI semiconductors are designed to provide the necessary computational power required for AI operations, while its computing infrastructure supports high-performance AI workloads across various applications. PFN's generative AI foundational models serve as a basis for developing advanced AI applications tailored to specific industry needs, enabling businesses to enhance their operational efficiencies and drive innovation. The AI solutions offered by PFN cater to diverse sectors, including retail, healthcare, and manufacturing, providing clients with customized capabilities to address real-world challenges.


PFN's clients include large enterprises and research institutions primarily in Japan, North America, and Europe, facilitating a global reach for its advanced technology solutions. In the most recent year of 2020, Preferred Networks reported a revenue of JPY 77,849,122. 50 and an EBITDA of JPY 9,293,089. 90.


The revenue structure is built around providing advanced AI technologies through various transactional models that include subscriptions and partnerships. Clients engage in ongoing agreements for access to PFN's proprietary technologies, allowing businesses to integrate and utilize these advanced AI solutions within their operations. This transactional model emphasizes recurring revenue through subscription services associated with flagship offerings, such as the PLaMo translation service, which is tailored for specific applications in language processing. Additionally, PFN collaborates with enterprises to develop bespoke AI solutions, creating partnerships that enhance their clients' capabilities and market reach.


These transactions reflect a B2B structure as PFN primarily services corporations and research organizations, positioning itself as a pivotal partner in their digital transformation journeys. Preferred Networks, Inc. plans to utilize the JPY 10,000. 00 mn raised in its latest funding round to accelerate the development of its platform offerings.


The company aims to introduce new products in the AI sector and is targeting expansion into new markets, including parts of Asia and North America, by mid-2026. The strategic investment from new partners, such as Shin-Etsu Chemical and SBI Investment, will significantly enhance its research and development capabilities, positioning PFN to meet the growing demands for AI solutions globally.


Current Investors

Toyota Motor Corporation, NTT, Hitachi

Primary Industry

Software

Sub Industries

Analytics & Performance Software, Education & Training Software

Website

www.preferred-networks.jp

Verticals

Artificial Intelligence, Artificial Intelligence, Cloud Computing, Mobile Apps, Robotics

Company Stage

Series D

Total Amount Raised

Subscriber access only

Preferred Networks, Inc. - financials

Fiscal Year EndedJan 31, 2020
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Operating Margin-
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Preferred Networks, Inc. - employee data

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