Reddit co-founder’s VC firm eyes Japan for AI chip investments

Reddit co-founder Alexis Ohanian, Sr. / Photo credit: Ohanian’s LinkedIn Page

Alexis Ohanian, Sr., co-founder and former chairman of social media platform Reddit, is pursuing tech-focused investment opportunities in Japan via his early-stage VC firm Seven Seven Six, Nikkei Asia reported.

According to Ohanian, Seven Seven Six will focus on startups designing and manufacturing processors centered around AI development. He expects competitiveness in Japan’s AI landscape to heat up, as the country would want to bolster its own capabilities in the sector to drive growth.

At the same time, Ohanian said he anticipates Japan-US relations to deepen over the next decade, despite “receding” globalization in other parts of the map.

Seven Seven Six’s initiative directly ties in with the US’s pursuit of an AI chip production line independent of Chinese tech.

There have already been moves to move production closer to Japan, including an investment from TSMC for a second factory in the country. US chipmaker Nvidia has also teamed up with Japan’s SoftBank for generative AI initiatives.

“It just behooves us to have the connections, to have the relationships [with Japan], because this is going to be a gateway to Asia,” Ohanian told Nikkei Asia.

A closer reach to the region may be a boon to the US, with countries like India and Singapore stepping up their game recently in the AI space.

Seven Seven Six said that it currently handles US$970 million in assets under management. Its portfolio includes blockchain platform Americana and foodtech startup BetterBrand.

Ohanian’s earlier venture, Reddit, recently launched a public offering on the New York Stock Exchange, reaching a US$6.4 billion valuation. On the first day of trading, the company’s shares went up 48%.

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