Sierra, AI start-up by OpenAI chair, now valued at $4.5B
Sierra, the AI software start-up, has raised $175 million in its latest round of funding. The investment, which was led by Greenoaks Capital, saw participation from Thrive Capital and Iconiq. With this, Sierra's valuation has reached $4.5 billion, the company said on Monday. The latest funding round comes just under a year after the start-up went public.
Previous funding and market position
Before this latest investment, Sierra had raised $110 million from Sequoia Capital and Benchmark at a valuation of nearly $1 billion. The new funding round cements Sierra's place as one of the most highly valued AI start-ups in the market. Despite fears of an AI bubble, the company has reportedly crossed $20 million in annualized revenue, according to Reuters.
Sierra's AI-powered customer service chatbots
Sierra focuses on offering AI-powered customer service chatbots to businesses. The company's list of clients includes popular names like WeightWatchers and Sirius XM. Since ChatGPT's debut, investors have shifted interest toward apps that promise steady revenue for enterprises, rather than funding expensive foundational models.
Sierra's unique approach to AI customer service
Sierra competes in a crowded space of AI-powered customer service solutions, including giants like Salesforce and start-ups like Forethought. The company sets itself apart by reducing "hallucinations," a prevalent issue where large language models produce inaccurate information. This distinctive approach enables brands to trust the AI agent for customer interactions more confidently.
Co-founders and their Silicon Valley prominence
Sierra is the latest venture of Bret Taylor, a Silicon Valley veteran who has served as the CEO of Salesforce and Chairman of the board at OpenAI. His co-founder, Clay Bavor, is a former Google executive who has had a major role managing Gmail and Google Drive. Together, they hope to create a unique space for Sierra in the competitive world of AI-powered customer service solutions.
