Sierra AI Secures $175 Million Funding, Reaching $4.5 Billion Valuation

OpenAI Chair's AI Startup Sierra Gets $4.5 Billion Valuation in Latest Funding Round

(Reuters) - Sierra, a software startup co-founded by former Salesforce co-CEO Bret Taylor, has raised $175 million in a new funding round led by Greenoaks Capital that gave it a $4.5 billion valuation, the company said on Monday. The funding round comes less than a year after the public launch of the young AI startup by Taylor, one of the most closely watched entrepreneurs in Silicon Valley. The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. Thrive Capital and Iconiq also participated in the round. The funding has established Sierra as one of the most highly valued AI startups, despite growing concerns around AI bubbles. The company has crossed $20 million in annualized revenue, sources familiar with the matter told Reuters. A huge valuation at an early-stage startup is usually based on the company's growth potential and investor's interest in the category and founding team. The major jump in valuation signals appetite to pay high multiples to back AI companies by established founders. The Information earlier reported on the funding talks. One-year-old Sierra focuses on selling artificial intelligence-powered customer service chatbots to enterprises. It serves clients such as WeightWatchers and Sirius XM. Since OpenAI's ChatGPT burst on to the scene, investors' interest in funding the technology has gradually shifted from funding expensive foundational models into applications selling to enterprises that generate steady revenue. Founded by Taylor and longtime Google executive Clay Bavor, Sierra AI enters a crowded space of AI-powered customer service solutions, which includes giants like Salesforce and startups like Forethought. Sierra says it differentiated itself by reducing "hallucinations", a common issue in which large language models generate false information, so brands can trust the AI agent to interact with customers. Sierra is the latest venture by Taylor, who gained prominence in Silicon Valley through his leadership roles at Salesforce. He also serves as chairman of the board at OpenAI, and has previously downplayed the competition between OpenAI, which aims to build artificial intelligence, and Sierra. Taylor, who oversaw the Twitter board throughout the high-profile takeover by Elon Musk, was previously seen as a likely successor to Salesforce CEO Marc Benioff before announcing his departure to return to entrepreneurial ventures. His co-founder Clay Bavor joined Google in 2005 and held significant roles, including managing Gmail and Google Drive. (Reporting by Krystal Hu in New York, with Kenrick Cai and Anna Tong in San Francisco; Editing by David Holmes)

OpenAI Chair's AI Startup Sierra Gets $4.5 Billion Valuation in Latest Funding Round

The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. The funding has established Sierra as one of the most highly valued AI startups, despite growing concerns around AI bubbles. The company has crossed $20 million in annualized revenue, sources familiar with the matter told Reuters. A huge valuation at an early-stage startup is usually based on the company's growth potential and investor's interest in the category and founding team. The major jump in valuation signals appetite to pay high multiples to back AI companies by established founders. The Information earlier reported on the funding talks.

OpenAI chair's AI startup Sierra gets $4.5 billion valuation in latest funding round

(Reuters) - Sierra, a software startup co-founded by former Salesforce co-CEO Bret Taylor, has raised $175 million in a new funding round led by Greenoaks Capital that gave it a $4.5 billion valuation, the company said on Monday. The funding round comes less than a year after the public launch of the young AI startup by Taylor, one of the most closely watched entrepreneurs in Silicon Valley. The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. Thrive Capital and Iconiq also participated in the round. The funding has established Sierra as one of the most highly valued AI startups, despite growing concerns around AI bubbles. The company has crossed $20 million in annualized revenue, sources familiar with the matter told Reuters. A huge valuation at an early-stage startup is usually based on the company's growth potential and investor's interest in the category and founding team. The major jump in valuation signals appetite to pay high multiples to back AI companies by established founders. The Information earlier reported on the funding talks. One-year-old Sierra focuses on selling artificial intelligence-powered customer service chatbots to enterprises. It serves clients such as WeightWatchers and Sirius XM. Since OpenAI's ChatGPT burst on to the scene, investors' interest in funding the technology has gradually shifted from funding expensive foundational models into applications selling to enterprises that generate steady revenue. Founded by Taylor and longtime Google executive Clay Bavor, Sierra AI enters a crowded space of AI-powered customer service solutions, which includes giants like Salesforce and startups like Forethought. Sierra says it differentiated itself by reducing "hallucinations", a common issue in which large language models generate false information, so brands can trust the AI agent to interact with customers. Sierra is the latest venture by Taylor, who gained prominence in Silicon Valley through his leadership roles at Salesforce. He also serves as chairman of the board at OpenAI, and has previously downplayed the competition between OpenAI, which aims to build artificial intelligence, and Sierra. Taylor, who oversaw the Twitter board throughout the high-profile takeover by Elon Musk, was previously seen as a likely successor to Salesforce CEO Marc Benioff before announcing his departure to return to entrepreneurial ventures. His co-founder Clay Bavor joined Google in 2005 and held significant roles, including managing Gmail and Google Drive. (Reporting by Krystal Hu in New York, with Kenrick Cai and Anna Tong in San Francisco; Editing by David Holmes)

OpenAI chair's AI startup Sierra gets $4.5 billion valuation in latest funding round

The funding round comes less than a year after the public launch of the young AI startup by Taylor, one of the most closely watched entrepreneurs in Silicon Valley. The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation.Sierra, a software startup cofounded by former Salesforce co-CEO Bret Taylor, has raised $175 million in a new funding round led by Greenoaks Capital that gave it a $4.5 billion valuation, the company said on Monday. The funding round comes less than a year after the public launch of the young AI startup by Taylor, one of the most closely watched entrepreneurs in Silicon Valley. The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. Thrive Capital and Iconiq also participated in the round. The funding has established Sierra as one of the most highly valued AI startups, despite growing concerns around AI bubbles. The company has crossed $20 million in annualized revenue, sources familiar with the matter told Reuters. A huge valuation at an early-stage startup is usually based on the company's growth potential and investor's interest in the category and founding team. The major jump in valuation signals appetite to pay high multiples to back AI companies by established founders. The Information earlier reported on the funding talks. One-year-old Sierra focuses on selling artificial intelligence-powered customer service chatbots to enterprises. It serves clients such as WeightWatchers and Sirius XM. Since OpenAI's ChatGPT burst on to the scene, investors' interest in funding the technology has gradually shifted from funding expensive foundational models into applications selling to enterprises that generate steady revenue. Founded by Taylor and longtime Google executive Clay Bavor, Sierra AI enters a crowded space of AI-powered customer service solutions, which includes giants like Salesforce and startups like Forethought. Sierra says it differentiated itself by reducing "hallucinations", a common issue in which large language models generate false information, so brands can trust the AI agent to interact with customers. Sierra is the latest venture by Taylor, who gained prominence in Silicon Valley through his leadership roles at Salesforce. He also serves as chairman of the board at OpenAI, and has previously downplayed the competition between OpenAI, which aims to build artificial intelligence, and Sierra. Taylor, who oversaw the Twitter board throughout the high-profile takeover by Elon Musk, was previously seen as a likely successor to Salesforce CEO Marc Benioff before announcing his departure to return to entrepreneurial ventures. His cofounder Clay Bavor joined Google in 2005 and held significant roles, including managing Gmail and Google Drive.

OpenAI chair's AI startup Sierra gets $4.5 bln valuation in latest funding round

Oct 28 (Reuters) - Sierra, a software startup co-founded by former Salesforce (CRM.N), opens new tab co-CEO Bret Taylor, has raised $175 million in a new funding round led by Greenoaks Capital that gave it a $4.5 billion valuation, the company said on Monday. The funding round comes less than a year after the public launch of the young AI startup by Taylor, one of the most closely watched entrepreneurs in Silicon Valley. The company previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. Advertisement · Scroll to continue Thrive Capital and Iconiq also participated in the round. The funding has established Sierra as one of the most highly valued AI startups, despite growing concerns around AI bubbles. The company has crossed $20 million in annualized revenue, sources familiar with the matter told Reuters. A huge valuation at an early-stage startup is usually based on the company's growth potential and investor's interest in the category and founding team. Advertisement · Scroll to continue The major jump in valuation signals appetite to pay high multiples to back AI companies by established founders. The Information earlier reported on the funding talks. One-year-old Sierra focuses on selling artificial intelligence-powered customer service chatbots to enterprises. It serves clients such as WeightWatchers (WW.O), opens new tab and Sirius XM (SIRI.O), opens new tab. Since OpenAI's ChatGPT burst on to the scene, investors' interest in funding the technology has gradually shifted from funding expensive foundational models into applications selling to enterprises that generate steady revenue. Founded by Taylor and longtime Google executive Clay Bavor, Sierra AI enters a crowded space of AI-powered customer service solutions, which includes giants like Salesforce and startups like Forethought. Sierra says it differentiated itself by reducing "hallucinations", a common issue in which large language models generate false information, so brands can trust the AI agent to interact with customers. Sierra is the latest venture by Taylor, who gained prominence in Silicon Valley through his leadership roles at Salesforce. He also serves as chairman of the board at OpenAI, and has previously downplayed the competition between OpenAI, which aims to build artificial intelligence, and Sierra. Taylor, who oversaw the Twitter board throughout the high-profile takeover by Elon Musk, was previously seen as a likely successor to Salesforce CEO Marc Benioff before announcing his departure to return to entrepreneurial ventures. His co-founder Clay Bavor joined Google in 2005 and held significant roles, including managing Gmail and Google Drive. Reporting by Krystal Hu in New York, with Kenrick Cai and Anna Tong in San Francisco; Editing by David Holmes Our Standards: The Thomson Reuters Trust Principles., opens new tab

Generative AI agent startup Sierra Technologies raises $175M at $4.5B valuation - SiliconANGLE

Generative AI agent startup Sierra Technologies raises $175M at $4.5B valuation Sierra Technologies Inc., a hot artificial intelligence startup co-founded by ex-Salesforce Inc. co-Chief Executive Bret Taylor, said today it has closed on a $175 million funding round that brings its valuation to $4.5 billion. The round was led by Greenoaks Capital and saw participation from Thrive Capital and Iconiq, and confirms a report earlier this month by The Information, which said the company was engaged in talks with investors. Sierra is an AI startup that helps enterprises such as WeightWatchers International Inc., the audio equipment company Sonos Inc. and the home security firm ADT Inc. implement proactive virtual assistants for customer service roles. The startup's technology is built on a conversational AI model that allows it to engage in natural language conversations with customers. It also has the ability to "see" and understand a company's own business data, enabling its AI agents to be contextually aware of the ways they might be able to solve customer's issues. For instance, if a caller wants to know what time a store is open, or asks where it's located, or requests a ticket to return an item, it can delve into the company's knowledge base to find the answers. By taking actions on behalf of customers, Sierra's chatbots can reduce the instances in which calls have to be handed off to a real human agent to be solved. Besides its agentic AI capabilities, Sierra also differentiates itself through the way customers can personalize their customer service bots. For instance, the clothing company Chubbies Inc. opted to create a young and hip-sounding agent with the slightly sarcastic name, Duncan Smothers. Meanwhile, some other brands have opted for AI agents with British accents and a more serious tone. In an interview with CNBC, Taylor said the idea with this level of personalization is that conversational AI agents should not only help companies, but also act as a kind of brand ambassador. "It's actually something that represents a statement of your values," he explained. "So do you want to be sarcastic? Do you want to use emoji? Do you want it to sound like text messaging, or do you want it to sound like a lawyer?" Another thing that sets Sierra apart from its competitors is its reliance on a "constellation" of well-known large language models. While it primarily uses one model to do the heavy lifting, there's an expectation that no single LLM is 100% reliable and accurate. So it uses secondary models as a kind of "backup", in order to monitor the accuracy of the first and help when necessary. Sierra didn't specify the exact models it uses, but said they include LLMs from OpenAI, Anthropic PBC and Meta Platforms Inc., among others. Taylor, who previously ran Salesforce alongside its co-founder Marc Benioff and served as chairman of Twitter Inc. when Elon Musk was attempting to buy that company, is one of the best-known entrepreneurs in Silicon Valley, and has a long held interest in AI technology. He is said to have been involved in a number of AI initiatives during his time at Salesforce, and also sits on the board of directors at OpenAI. Prior to Salesforce, Taylor held a key role at Google LLC, where he was heavily involved in the creation of Google Maps. It was during this time that he met Sierra's other co-founder Clay Bavor, who headed up the virtual reality efforts at Google. Prior to today's round, Sierra had previously raised $110 million in funding from Sequoia Capital and Benchmark at a valuation of nearly $1 billion. With the latest round, Sierra establishes itself among a growing number of extremely well-funded AI startups, which continue to rake in billions of dollars in venture capital money despite growing concerns about AI bubbles. OpenAI recently raised $6.6 billion at a valuation of $157 billion, while Perplexity AI Inc. is said to be holding talks over a possible $500 million raise that would bring its value to over $9 billion. The valuations of early-stage startups are usually based on their growth potential and the skill and reputation of their founding team. Sierra's annual recurring revenue has already crossed the $20 million barrier, Reuters reported.

Bret Taylor's AI Startup Sierra Valued at $4.5 Billion

(Bloomberg) -- Sierra Technologies Inc., the artificial intelligence startup founded by OpenAI Chairman Bret Taylor and former Alphabet Inc. executive Clay Bavor, has raised $175 million in a financing round that values the company at $4.5 billion. The deal represents a major valuation jump for the company, which was worth nearly $1 billion earlier this year. Taylor, previously the co-chief executive officer of Salesforce Inc., said in an interview on CNBC Monday that while the funding environment in the industry seems "frothy," AI's promise justifies the outlays. "With the benefit of hindsight, it will probably be warranted," he said, comparing the best companies in the sector to dot-com-era behemoths such as Alphabet's Google. He cautioned that the industry is also rife with "a lot of snake oil." The round was led by Greenoaks Capital Partners, with participation from Thrive Capital, Iconiq Capital and existing investors, a spokesperson said. Sierra makes AI customer service tools for brands like ADT Inc., the home security company, and Casper Sleep Inc., the mattress company. Bloomberg previously reported that a new funding round was imminent.

Bret Taylor's AI Startup Sierra Secures $175 Million, Reaches $4.5 Billion Valuation

Founded in 2023, Sierra is a conversational AI platform for businesses. It constitutes an AI "agent" for every company that can automate tasks, such as customer service and voice calls. Sierra Technologies, an AI startup co-founded by former Salesforce executive Bret Taylor and ex-Google leader Clay Bavor, has raised $175 million. This latest investment propels the company's valuation to an impressive $4.5 billion, marking a substantial increase from its previous valuation earlier this year. The funding round was led by Greenoaks Capital Partners, with additional participation from Thrive Capital and Iconiq Capital. This influx of capital brings Sierra's total funding to $285 million since its inception. Founded in 2023, Sierra is a conversational AI platform for businesses. It constitutes an AI "agent" for every company that can automate tasks, such as customer service and voice calls. Bret Taylor, who also serves as the chairman of OpenAI, brings a wealth of experience from his time at Salesforce and his role in the development of Google Maps. His co-founder, Clay Bavor, contributes expertise from his tenure at Google, where he managed key products like Gmail and Google Drive. The Sierra team considers trust, craftsmanship, and customer obsession their core values. The platform enables its customers to get answers, solve problems, and take action through a conversational experience. The company has attracted high-profile clients such as WeightWatchers and Sirius XM, who use Sierra's technology to better their customer service operations. These AI agents use language processing and human-level reasoning to mimic human connectivity, ensuring seamless customer service and satisfaction. The company uses a combination of large language models from various providers, including OpenAI, Anthropic, and Meta, to ensure accuracy and reliability in customer interactions. On October 9, 2024, Sierra announced that its AI agent can now speak to customers on the phone, "managing the back and forth of a live conversation" and providing "service-specific context it needs to speak the language of your company." With this funding round, Sierra is following in the footsteps of OpenAI, which recently acquired billions of dollars in funding. As customer support rises effectively as one of the most successful early use cases for conversational AI, Sierra is a strong beginner. However, it faces tough competition from big tech companies like Taylor's former organisation, Salesforce, OpenAI itself, and startups like Intercom, Decagon, and Maven AGI.

Bret Taylor's AI Startup Sierra Hits $4.5B Valuation Just A Year After Launch: OpenAI Chair's Latest Venture Towers Over These Century-Old Brands - Macy's (NYSE:M), Amazon.com (NASDAQ:AMZN)

Sierra, the AI startup co-founded by former Salesforce co-CEO and OpenAI chairman Bret Taylor, has achieved a valuation of $4.5 billion following a successful funding round. What Happened: On Monday, a year after its public launch, Sierra raised $175 million in a funding round led by Greenoaks Capital, reported Reuters. Thrive Capital and Iconiq also participated in the round. The company had previously raised $110 million from Sequoia Capital and Benchmark at a nearly $1 billion valuation. See Also: Elon Musk's $2.9K Offer Rejected By SEC, Agency Requests Judge To Sanction Billionaire Over Missed Depositions Despite growing concerns around AI bubbles, the funding has positioned Sierra as one of the most highly valued startups. The company has surpassed $20 million in annualized revenue, the report noted, citing sources familiar with the matter. This latest funding round values Sierra higher than established brands such as Nikon Corp. NINOY and Macy's, Inc. M, which have market capitalizations of $4.43 billion and $4.30 billion, respectively. Co-founded by Taylor and Google veteran Clay Bavor, Sierra specializes in selling AI-powered customer service chatbots to enterprises. It serves clients such as WeightWatchers WW and SiriusXM Holdings Inc SIRI. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Sierra's skyrocketing valuation comes amidst a surge in funding for AI startups. For instance, earlier this month ChatGPT-parent OpenAI secured more than $6.5 billion in new funding at a valuation of $157 billion. In March this year, Amazon.com, Inc. AMZN announced an additional $2.75 billion investment in Anthropic. This follows an initial $1.25 billion investment from Amazon in September 2023, raising its total commitment to $4 billion. At the time, the investment was made based on Anthropic's valuation of $18.4 billion. In May 2024, Elon Musk's AI startup xAI raised a staggering $6 billion in its Series B funding round, pegging a reported valuation of $24 billion. In July, Cohere Inc., backed by Nvidia Corporation NVDA reached a $5.5 billion valuation becoming one of Canada's largest startups. Photo Courtesy: Sierra AI Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Jim Cramer Says Apple, Meta, Amazon And Other Tech Earnings Present A 'Huge Opportunity,' But Advises To 'Wait To Process The Numbers...Before You Pull The Trigger' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Bret Taylor's AI startup Sierra raises funding at $4.5 billion valuation

Bret Taylor, co-CEO of Salesforce, speaks at the Viva Technology Conference in Paris on June 15, 2022. Artificial intelligence startup Sierra, co-founded by ex-Salesforce co-CEO Bret Taylor, is more than quadrupling its valuation to $4.5 billion in a fresh funding round. The San Francisco-based company, which was valued at $1 billion in January, raised $175 million in a funding round led by Greenoaks Capital. The Information reported earlier this month that Sierra was in the midst of raising capital. Taylor is chairman of OpenAI's board and previously ran Salesforce, alongside Marc Benioff. He was also chairman of Twitter when Elon Musk was negotiating to buy the social media company. Taylor is a longtime entrepreneur, widely credited with helping to create Google Maps. At Google, he met his Sierra co-founder Clay Bavor, who spent nearly two decades at the tech giant, leading virtual reality efforts and Google Labs. Sierra is focused on helping enterprises like home security company ADT, Sonos, Weight Watchers and Casper personalize and implement AI agents for customer service. Taylor and Bavor unveiled the startup earlier this year. "We think every company in the world, whether it's a technology company or a 150-year-old company like ADT, can benefit from AI, and the technology is ready right now," Taylor told CNBC in an interview. "We want to enable Sierra to address that market, and that means expanding internationally and to other industries." ICONIQ and Josh Kushner's Thrive Capital contributed to the new funding round. Taylor describes Sierra as "conversational AI," and bristles at the word "chatbot," even banning the phrase in the company's downtown San Francisco office. Sierra is looking to create a more conversational style of interaction, Taylor said. He pointed to the ease of OpenAI's ChatGPT and compared it to the frustrating experience of talking on the phone with an airline bot. "When you think of chatbots, you think of those annoying, robotic things -- you can feel the difference," Taylor said, adding that Sierra is making their agents more "empathetic and conversational."

Bret Taylor's customer service AI startup just raised $175M | TechCrunch

Sierra, the AI startup co-founded by OpenAI chairman Bret Taylor, has raised $175 million in a funding round that values the startup at $4.5 billion. Sierra, launched by Taylor and longtime Google exec Clay Bavor, focuses on selling AI-powered customer service chatbots to brands like WeightWatchers and Sirius XM. There's an "agent" component, as well. The platform connects to other enterprise systems to undertake tasks on behalf of the customer without humans being involved. There's certainly no shortage of competition in the chatbot space. But Sierra claims its tech is less susceptible to hallucinations, the made-up facts AI models occasionally spew. Sierra also lets customers customize its AI's personality to their corporate brand, using a "constellation" of generative AI models from OpenAI, Anthropic, and Meta, among others, to complete tasks and check for accuracy. Taylor and Bavor have a long history in customer service tech. Taylor spent nearly a decade at Salesforce, and years ago founded Quip, which Salesforce bought for $750 million in the summer of 2016. Bavor managed Gmail and Google Drive at Google, among other consumer-facing products. Taylor met Bavor while at Google, where he worked before serving as Facebook's CTO for several years. At Google, Taylor is widely credited with helping to launch Google Maps. Years later, he'd oversee the Twitter board throughout the social media site's takeover by Elon Musk. Investors in Sierra's latest round included ICONIQ, Thrive Capital, and Iconiq. Greenoaks Capital led the round, which brings Sierra's total raised to $285 million, per Crunchbase.