Former Twitter CEO Parag Agrawal's AI Startup Parallel Raises $100 Million for Web Search Infrastructure

Former Twitter CEO Parag Agrawal's Al startup Parallel raises $100 million

Former Twitter CEO Parag Agrawal's Al startup Parallel raises $100 million Former Twitter Inc. Chief Executive Parag Agrawal today announced that his startup, Parallel Web Systems, has raised $100 million to build web search infrastructure designed specifically for AI agents. The Series A round values the company at $740 million and was co-led by Kleiner Perkins and Index Ventures, with Spark Capital and existing backers Khosla Ventures, First Round Capital, and Terrain also participating. Kleiner Perkins' Mamoon Hamid joins Vinod Khosla, Shardul Shah, and Josh Kopelman on the board. The company was founded two years ago, raising $30 million in Jan. 2024. Parallel is trying to solve a problem created by the rise of AI: most AI models still rely on static, outdated snapshots of the internet. The company is building a new layer of web plumbing - application programming interfaces, APIs, that give AI systems real-time access to fresh, reliable online information so they can complete tasks accurately, reducing the hallucinations that occur when models lack live data. Agrawal has said enterprise customers are already using Parallel's infrastructure to support AI agents that can write software, analyze sales data, and evaluate insurance risk. All of these tasks depend on having high-quality, continually updated web information combined with the company's own internal data. Agrawal also hopes to address the escalating conflict between AI companies and content owners. Web scraping of licensed material has triggered lawsuits, more paywalls, and broader access restrictions, which in turn have reduced publisher traffic. Parallel, he says, will create an "open market mechanism" intended to compensate creators and encourage them to keep content accessible. The specifics of this system have not yet been detailed.

Ex-Twitter CEO Agrawal's AI search startup Parallel raises $100 million - The Economic Times

AI startup Parallel Web Systems, founded by ex-Twitter CEO Parag Agrawal, has raised $100 million at a $740 million valuation. The firm builds APIs that let AI agents search the live web. Backed by top investors, it aims to reshape online access, linking AI systems with real-time, quality web data.AI startup Parallel Web Systems, founded by former Twitter CEO Parag Agrawal, has raised $100 million to build web search infrastructure for artificial intelligence agents and fund deals with online content owners, Agrawal said in an interview. The Series A round, which values the company at $740 million, was co-led by venture firms Kleiner Perkins and Index Ventures, with participation from other existing backers including Khosla Ventures. Parallel aims to address what it sees as a fundamental shift in internet use, as AI agents increasingly become the web's primary users. The company builds application programming interfaces (APIs) that let AI systems search the live web for up-to-date information to complete tasks. Agrawal said its enterprise customers use Parallel to power AI agents that write software code, analyse customer data for sales teams and assess risk for insurance underwriting - areas where high-quality web data, alongside internal systems, is critical. "How many jobs are there where we could turn off web access and ask you to do the same job fully?" Agrawal told Reuters. "You can't deprive an M&A lawyer from not being able to use the web, so why would you deprive their agents?" He said he believed the startup's technology was superior to built-in web search functions offered by AI-model providers. Unlike traditional search engines that rank links for humans to click, Parallel's system returns optimized content, or "tokens," designed to feed directly into an AI model's context window. The company says this approach improves accuracy, reduces "hallucinations", or false information, and cuts operational costs for customers. Agrawal said the new capital will allow Parallel to "go all in" on product development and customer acquisition. Some of the funds will also go toward tackling the challenge of web content increasingly being locked behind paywalls and login barriers to prevent AI web scraping, as web owners from publishers to social media platforms see traffic decline as the rise of AI chatbots changes how people access information. Agrawal said Parallel plans to develop an "open market mechanism" - a new economic model to incentivize publishers to keep content accessible to AI systems, though he did not provide details. Founded two years ago, Parallel first launched its products in August 2025. The company previously raised $30 million in January 2024.

After Settling With Elon Musk, Ex-Twitter CEO Parag Agrawal Secures $100 Million For His AI-Powered Search Startup Parallel - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Former Twitter CEO Parag Agrawal is charting a new course in artificial intelligence with his startup Parallel, which has raised $100 million in Series A funding. Parallel Aims To Build The Web For AI Agents Parallel Web Systems, founded two years ago by Agrawal, is developing infrastructure that lets AI agents search the internet in real time, reported Reuters. The Series A round, which values the company at $740 million, was co-led by Kleiner Perkins and Index Ventures, with participation from Khosla Ventures and other existing backers. Agrawal said Parallel's APIs allow AI systems to tap into live web data to perform complex tasks -- from writing software code to analyzing customer data and evaluating insurance risk. Agrawal told the publication that real-time data access is becoming essential for AI-driven work. See Also: Tim Cook Says US-Made Servers Will Power Apple Intelligence, Meeting $600 Billion Manufacturing Commitment Amid Trump's Build-At-Home Push A New Model For Web Access In The AI Era Unlike traditional search engines like Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google that rank links for humans, Parallel's technology delivers structured web content -- or "tokens" -- directly into AI models. This approach, the company says, improves accuracy, reduces misinformation and cuts operational costs for clients. Agrawal said the new funding will accelerate product development and customer acquisition while addressing challenges like paywalled content that limits AI training. He hinted at plans to create an "open market mechanism" to compensate publishers who keep their content accessible to AI systems. From Twitter's Boardroom To The AI Frontier Agrawal's comeback follows a legal settlement with Elon Musk's X Corp in October, resolving a $128 million severance dispute. Now, the former Twitter chief is betting that Parallel could power the next generation of AI-driven web search. Benzinga's Edge Stock Rankings place GOOGL in the 90th percentile for Momentum, highlighting its solid long-term price performance. Click here to see how it compares with industry peers. Read Next: Trump Turnberry Is 'Our Monalisa' Says Eric Trump As He Shrugs Off Millions In Losses -- 'We Don't Give A...' Photo Courtesy: Tada Images on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. GOOGAlphabet Inc$286.59-1.77%OverviewGOOGLAlphabet Inc$286.01-1.82%Market News and Data brought to you by Benzinga APIs

Ex-Twitter CEO Agrawal's AI search startup Parallel raises $100 million

(Reuters) -AI startup Parallel Web Systems, founded by former Twitter CEO Parag Agrawal, has raised $100 million to build web search infrastructure for artificial intelligence agents and fund deals with online content owners, Agrawal said in an interview. The Series A round, which values the company at $740 million, was co-led by venture firms Kleiner Perkins and Index Ventures, with participation from other existing backers including Khosla Ventures. Parallel aims to address what it sees as a fundamental shift in internet use, as AI agents increasingly become the web's primary users. The company builds application programming interfaces (APIs) that let AI systems search the live web for up-to-date information to complete tasks. Agrawal said its enterprise customers use Parallel to power AI agents that write software code, analyze customer data for sales teams and assess risk for insurance underwriting - areas where high-quality web data, alongside internal systems, is critical. "How many jobs are there where we could turn off web access and ask you to do the same job fully?" Agrawal told Reuters. "You can't deprive an M&A lawyer from not being able to use the web, so why would you deprive their agents?" He said he believed the startup's technology was superior to built-in web search functions offered by AI-model providers. Unlike traditional search engines that rank links for humans to click, Parallel's system returns optimized content, or "tokens," designed to feed directly into an AI model's context window. The company says this approach improves accuracy, reduces "hallucinations", or false information, and cuts operational costs for customers. Agrawal said the new capital will allow Parallel to "go all in" on product development and customer acquisition. Some of the funds will also go toward tackling the challenge of web content increasingly being locked behind paywalls and login barriers to prevent AI web scraping, as web owners from publishers to social media platforms see traffic decline as the rise of AI chatbots changes how people access information. Agrawal said Parallel plans to develop an "open market mechanism" - a new economic model to incentivize publishers to keep content accessible to AI systems, though he did not provide details. Founded two years ago, Parallel first launched its products in August 2025. The company previously raised $30 million in January 2024. (Reporting by Krystal Hu in New York; Editing by Jamie Freed)