AI Translation Giant DeepL Explores $5 Billion U.S. IPO

AI translation startup DeepL reportedly weighing $5B IPO - SiliconANGLE

DeepL SE, a German developer of artificial intelligence translation software, is reportedly considering to go public on a U.S. stock exchange. The company received a $2 valuation following a $300 million funding round last March. Citing sources familiar with the matter, Bloomberg reported today that DeepL is seeking a market capitalization of up to $5 billion with its initial public offering. The steep valuation increase hints the company may be experiencing the same kind of rapid revenue growth as larger rivals such as OpenAI. DeepL's flagship offering is DeepL Translate Pro, an AI model that can translate documents into more than 30 languages. The company claims that the algorithm provides better accuracy than competing algorithms. In an internal comparison with Google Translate, DeepL determined that users were 30% more likely to prefer its model. That percentage rose to to 130% in an assessment that involved Microsoft Corp. 's translation software. DeepL's website states that its translation model was developed with "human-guided training methodology." That hints the company may be using a training method such as RLHF, or reinforcement learning from human feedback. It's one of the most popular ways to increase the output quality of language models. In a RLHF project, developers ask users to share their preferences for how an AI model should respond to their prompts. Those preferences are then encoded into a second AI model. That second algorithm trains the first AI to take into account user preferences when generating output. DeepL sells DeepL Translate Pro alongside two other models. The first can translate speech in near real-time during Zoom and Microsoft Teams meetings. DeepL says that the algorithm supports more than 30 languages. AI models sometime translate technical terminology and company-specific jargon in unexpected ways. To address that issue, DeepL enables organizations to provide its software with custom glossaries. Those glossaries can specify how DeepL models should translate business terms. DeepL says that its algorithms lend themselves to a wide range of use cases. A retailer with an international presence could use it to track new business regulations in each market where it operates. A marketing teams, meanwhile, can have DeepL localize their ads and other promotional content. DeepL's third offering is a text generation model. DeepL Write, as it's called, can point out grammar, punctuation and spelling mistakes. It also performs more advanced tasks such as rewriting paragraphs.

AI-Powered Translation Platform DeepL Considers US IPO | PYMNTS.com

The company has talked with potential advisers and could launch an IPO as soon as next year, seeking a valuation of as much as $5 billion, Bloomberg reported Thursday (Oct. 2), citing unnamed sources. The talks are ongoing and the details could change, according to the report. DeepL did not immediately reply to PYMNTS' request for comment. The company's Language AI platform provides translations in both written and spoken formats, is designed with enterprise security in mind, and is used by more than 200,000 businesses, governments, other organizations and individuals in 228 markets, according to its website. DeepL was valued at $2 billion in a May 2024 funding round in which it raised $300 million. That was up from a $1.085 billion valuation attained in a January 2023 funding round. In a May 2024 press release, Jarek Kutylowski, founder and CEO of DeepL, said that the company's Language AI platform solves real problems for global companies. "We're highly focused on continued growth and innovation to expand our solutions and ensure they remain industry-leading in terms of quality, precision and security," Kutylowski said. "This brings us closer to a future where every company, regardless of location, can operate seamlessly on a global scale with our AI." DeepL announced Wednesday (Oct. 1) that it appointed veteran tech leader Gonçalo Gaiolas as chief product officer to accelerate the company's innovation and enterprise adoption. Gaiolas most recently served as chief product and technology officer at B2B cybersecurity company SoSafe, where he helped double the company's revenue and expand its global footprint, according to a DeepL press release. Kutylowski said in the announcement that Gaiolas joins DeepL at "a pivotal time for our business, as we continue to scale our Language AI products and prepare to bring our newest product, DeepL Agent, to market." DeepL Agent is an autonomous AI agent designed to perform a variety of knowledge worker tasks in areas like finance, sales, marketing, customer support and localization, DeepL said in a Sept. 3 press release that unveiled the product. DeepL agent is currently in beta. PYMNTS reported in August 2024 that AI-powered translation tools could reshape how companies communicate across borders and cultures because they leverage advanced machine learning to capture nuance and context.

DeepL considers U.S. IPO at potential $5 billion valuation By Investing.com

Investing.com -- German AI translation company DeepL is exploring a potential initial public offering in the United States, according to a Bloomberg News report on Thursday. The Cologne-based startup has reportedly engaged in early discussions with possible advisers about listing on a U.S. exchange as early as 2026. Some sources indicated the company might seek a valuation of up to $5 billion, Bloomberg reported. DeepL did not provide an immediate response when asked for comment on the matter. The AI translation developer previously announced in May 2024 that it had reached a $2 billion valuation during a funding round led by Index Ventures. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

DeepL Considers U.S. IPO Next Year - Bloomberg News

The German AI language platform DeepL is reportedly exploring the possibility of going public in the United States as early as next year, according to sources cited by Bloomberg News. The company has held initial discussions with advisers and could target a valuation of up to $5 billion. In a funding round last year, DeepL raised $300 million at a valuation of $2 billion. DeepL employs more than 1,000 people and is backed by investors such as Benchmark, IVP, and Index Ventures. The Swedish investment firm Flat Capital owns a minor stake in DeepL.