Sierra, an AI startup led by OpenAI's chair, attains a $4.5 billion valuation
OpenAI's chairperson has launched an AI startup called Sierra, which has recently achieved a valuation of $4.5 billion.
TroibNews 
Sierra, a software startup co-founded by former Salesforce co-CEO Bret Taylor, has announced it raised $175 million in a funding round led by Greenoaks Capital, bringing its valuation to $4.5 billion, the company stated on Monday.
This funding round occurs less than a year after the young AI startup was publicly launched by Taylor, who is recognized as a prominent entrepreneur in Silicon Valley.
Previously, the company had secured $110 million from Sequoia Capital and Benchmark, achieving a nearly $1 billion valuation, with additional participation from Thrive Capital and Iconiq.
This latest funding has positioned Sierra among the most highly valued AI startups, despite emerging concerns regarding potential AI bubbles. Sources familiar with the matter informed Reuters that the company has surpassed $20 million in annualized revenue.
Early-stage startups often see high valuations driven by their growth potential and investor enthusiasm for the market segment and founding team.
The substantial increase in its valuation indicates an investor appetite for supporting AI firms led by established founders. Earlier reports from The Information highlighted the ongoing funding discussions.
Founded just a year ago, Sierra focuses on providing artificial intelligence-powered customer service chatbots to enterprise clients, including WeightWatchers and Sirius XM.
Since the rise of OpenAI's ChatGPT, there has been a notable shift in investor interest from funding costly foundational models toward applications that sell to enterprises and generate reliable revenue.
Co-founded by Taylor and long-time Google executive Clay Bavor, Sierra AI enters a competitive market for AI-driven customer service solutions, comprising both large companies like Salesforce and emerging startups like Forethought.
Sierra claims its competitive edge lies in minimizing "hallucinations," a common issue where large language models produce inaccurate information, ensuring that brands can rely on their AI agents for customer interactions.
Sierra marks Taylor's latest endeavor, who earned recognition in Silicon Valley for his leadership roles at Salesforce. He also holds the position of chairman of the board at OpenAI and has previously downplayed any rivalry between OpenAI and Sierra.
Taylor, who oversaw the Twitter board during Elon Musk's high-profile takeover, was once considered a potential successor to Salesforce CEO Marc Benioff before he decided to return to entrepreneurial activities.
His co-founder, Clay Bavor, joined Google in 2005 and held key positions, including overseeing Gmail and Google Drive.
Lucas Dupont for TROIB News
This funding round occurs less than a year after the young AI startup was publicly launched by Taylor, who is recognized as a prominent entrepreneur in Silicon Valley.
Previously, the company had secured $110 million from Sequoia Capital and Benchmark, achieving a nearly $1 billion valuation, with additional participation from Thrive Capital and Iconiq.
This latest funding has positioned Sierra among the most highly valued AI startups, despite emerging concerns regarding potential AI bubbles. Sources familiar with the matter informed Reuters that the company has surpassed $20 million in annualized revenue.
Early-stage startups often see high valuations driven by their growth potential and investor enthusiasm for the market segment and founding team.
The substantial increase in its valuation indicates an investor appetite for supporting AI firms led by established founders. Earlier reports from The Information highlighted the ongoing funding discussions.
Founded just a year ago, Sierra focuses on providing artificial intelligence-powered customer service chatbots to enterprise clients, including WeightWatchers and Sirius XM.
Since the rise of OpenAI's ChatGPT, there has been a notable shift in investor interest from funding costly foundational models toward applications that sell to enterprises and generate reliable revenue.
Co-founded by Taylor and long-time Google executive Clay Bavor, Sierra AI enters a competitive market for AI-driven customer service solutions, comprising both large companies like Salesforce and emerging startups like Forethought.
Sierra claims its competitive edge lies in minimizing "hallucinations," a common issue where large language models produce inaccurate information, ensuring that brands can rely on their AI agents for customer interactions.
Sierra marks Taylor's latest endeavor, who earned recognition in Silicon Valley for his leadership roles at Salesforce. He also holds the position of chairman of the board at OpenAI and has previously downplayed any rivalry between OpenAI and Sierra.
Taylor, who oversaw the Twitter board during Elon Musk's high-profile takeover, was once considered a potential successor to Salesforce CEO Marc Benioff before he decided to return to entrepreneurial activities.
His co-founder, Clay Bavor, joined Google in 2005 and held key positions, including overseeing Gmail and Google Drive.
Lucas Dupont for TROIB News
