Glean, an artificial intelligence startup, is in advanced talks for a deal that could double its valuation to $4.5 billion in six months. This increase in its valuation reflects continued investor interest in fast-growing artificial intelligence startups despite recent uncertainties in the sector.
According to people familiar with the matter, the company is close to raising $250 million in a new round of funding. DST Global, the venture capital firm founded by investor Yuri Milner, is in discussions to lead this funding round, though details could change before the deal is finalized.
According to sources close to the company, Glean has reported annual subscription revenue of $55 million and projects to reach $100 million by the end of the year. Its clients include big names such as Instacart, Pinterest, Reddit, and Duolingo, underscoring confidence in its technology solutions.
Founded in 2019 by Arvind Jain, a former Google search engineer, Glean was valued at $2.2 billion in February when it raised $200 million from venture capital firms such as Kleiner Perkins, Lightspeed Venture Partners, and Sequoia Capital.
The success of ChatGPT in late 2022 spurred a boom in AI funding, but investors have tempered their expectations after discovering that the technology is more costly to develop than anticipated. Currently, venture capitalists are looking for AI startups that deliver innovations and demonstrate sustainable growth.
Unlike other AI startups that have needed financial bailouts or have had to cut costs, Glean seems well-positioned, thanks to its focus on the enterprise market. Its generative search engine uses language models from OpenAI and other developers, which reduces costs and facilitates adoption in large organizations.
Glean's software enables employees to search for dispersed information within organizations. According to The Wall Street Journal, this niche market has been identified as promising for generative AI applications in the near term. This sector continues attracting interest from investors looking for businesses with clear growth potential in a competitive environment.
