Sakana AI has achieved a ¥400 billion ($2.6 billion) valuation after raising ¥20 billion in a recent funding round, and notes that it is now Japan’s largest startup ever.

The new investment and the sky-high valuation come as AI mania grips markets globally and drives shares of publicly traded AI-related companies to unprecedented levels. Nvidia now has a market capitalization of more than $4.5 trillion.

It also comes as more questions are raised about AI and whether it will deliver on its promises and generate enough profit to justify all the capital being committed to it.