Japanese AI VTuber Shizuku receives investment from a16z! Valued at $75 million, claiming to create an AI version of Hatsune Miku

Japanese AI VTuber Shizuku receives $15 million from a16z, valuation rises to $75 million. The company is dedicated to creating an AI version of Hatsune Miku, but currently has few subscribers and is far behind industry leader Neuro Sama.

Japanese AI VTuber Shizuku receives investment from a16z

U.S. renowned venture capital firm a16z announced on February 10th that it has invested in Japanese AI VTuber technology company Shizuku AI. This funding round raised $15 million, boosting the company’s valuation to $75 million, about 4% of Japan’s leading VTuber publicly traded company Anycolor’s market cap of $1.7 billion.

In addition to a16z, Japanese e-commerce giant DeNA and OpenAI board member and Quora CEO Adam D’Angelo also participated in the investment personally.

Shizuku AI’s main product is AI VTuber Shizuku, a virtual YouTuber that uses generative AI technology to generate responses or interactions solely through AI, with no human performance behind, which is quite different from the traditional VTuber concept widely recognized by the public.

Shizuku Aims to Be the AI Version of Hatsune Miku, Funds to Be Invested in Chips and Derivative Content

Although Shizuku AI was founded in California, its founder is Japanese-born Akio Koda. He has a technical background at Meta and Luma AI and is the main author of StreamDiffusion, an AI image generation technology. The company aims to create an “AI-native IP” originating from Japan but capable of expanding globally, similar to virtual idol Hatsune Miku.

Hatsune Miku was not created with generative AI technology but was developed in 2007 by Crypton using Yamaha’s Vocaloid voice synthesis engine. The voice was provided by voice actress Saki Fujita, and the character design was by Kei.

As Japan’s iconic virtual idol, Hatsune Miku’s IP has persisted to this day, closely tied to Vocaloid songs performed with Vocaloid voices and created by humans, as well as a rich array of related illustrations, videos, and other media, embodying Japan’s vibrant fan-made culture.

Image source: Flickr, _Chag Photography Hatsune Miku is Japan’s iconic virtual idol

Akio Koda also believes that attractive characters cannot be created behind closed doors; they must evolve through interaction with real humans.

Shizuku resumed live streaming on February 1st with version 2.0. The new Live2D model was drawn by professional animators in collaboration with voice actress Miona Shikina, featuring multilingual dialogue capabilities. They also launched “Shizuku Lab,” a community platform allowing fans to use its voice synthesis technology for derivative works, aiming to build an interactive cycle driven by the community and address the current monotony of Shizuku’s interactions. Shizuku AI will also purchase semiconductor chips needed for AI development and continue commissioning Japanese creators for character design and animation.

Image source: Shizuku YouTube Japanese AI VTuber Shizuku receives investment from a16z

Shizuku’s Followers Are Significantly Behind Industry Leader Neuro Sama

With backing from Silicon Valley, Shizuku AI’s challenge has only just begun.

The current benchmark in the AI VTuber field is “Neuro Sama,” launched by British engineer Jack Vedal at the end of 2022. Not only does it have nearly one million followers on YouTube and Twitch, but it has also developed twin sister Evil, held 3D concerts, interacted with Vedal in VRChat, and created rich content. It has repeatedly broken Twitch’s trending record, and its achievements are unmatched.

Image source: YouTube The current leader in AI VTuber is “Neuro Sama,” launched by British engineer Jack Vedal at the end of 2022

In contrast, although Shizuku started in early 2023, its YouTube subscribers are only about 6,500, with a combined follower count on X (Twitter) of around 16,000. Its most popular ASMR video has only over 5,000 views, far behind Neuro Sama in traffic.

Meanwhile, the Chinese AI virtual streamer “Muji Meng,” launched almost simultaneously with Shizuku, has gained 152,000 followers since early 2023, with the last video posted at the end of April 2025.

The VTuber market is highly saturated. How can Shizuku stand out?

According to QYResearch, the global VTuber market is projected to reach $3.852 billion by 2030. AI VTubers, expected to bring innovative live streaming experiences, not only need to catch up with Neuro Sama but also compete in a market dominated by highly developed human VTubers.

Therefore, how Shizuku can resonate with audiences, create more entertainment during live streams, and differentiate itself will be key to catching up with Neuro Sama and expanding its audience.