Summary:
Glean raises $260 million in Series E funding, doubling its valuation to $4.6 billion.
Competes with Microsoft and Amazon in the generative AI space.
Founded by former Google engineers in 2019, transitioning to generative AI.
Global enterprise spending on generative AI projected to reach $143 billion by 2027.
36 generative AI startups have become unicorns in a record year for AI funding.
Glean Secures $260 Million in Series E Funding
AI-powered search startup Glean has announced a successful raise of $260 million in a Series E funding round, bringing its valuation to a staggering $4.6 billionâmore than double its previous valuation. This funding round was led by Altimeter and DST Global, with participation from notable investors like Craft Ventures, Sapphire Ventures, and the SoftBank Vision Fund 2.
Arvind Jain, CEO Glean, at Web Summit 2022
Harry Murphy | Sportsfile | Getty Images
Glean's Competitive Landscape
Based in Palo Alto, California, Glean competes with a host of well-funded generative AI startups and established tech giants such as Microsoft and Amazon. The company's focus is on enhancing enterprise search capabilities through conversational AI, helping businesses navigate internal data and retrieve information efficiently. Glean aims to redefine the cognitive search tool space, competing against firms like Perplexity, Coveo, and LucidWork.
Funding Details
This funding round has attracted more than 20 investors, and existing backers include Coatue, General Catalyst, Sequoia Capital, and others.
The Vision Behind Glean
Founded in 2019 by Arvind Jain and a team of former Google engineers, Glean initially started as an enterprise search engine but quickly shifted focus towards generative AI. Jain describes Glean as a combination of Google and ChatGPT tailored for businesses. The platform is designed to provide quick answers and streamline information retrieval, significantly enhancing workplace productivity.
The Future of AI Spending
According to research from IDC, global enterprise spending on generative AI is expected to surge from $16 billion in 2023 to $143 billion by 2027, which would account for 28% of total AI expenditures. Jain notes that we are witnessing a significant AI transformation, one that could rival other major technological advancements in recent history.
AI Startups on the Rise
In this record-breaking year for AI funding, startups in the sector have seen a fivefold increase in investment compared to the previous year. 36 generative AI startups have reached unicorn status, fueled by corporate investments from tech behemoths like Microsoft, Amazon, Meta, and Google.
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