Sierra, the AI startup co-founded by OpenAI Chairman Bret Taylor and former Google executive Clay Bavor, is in discussions to raise new funding at a valuation exceeding $4 billion, according to sources familiar with the deal. This signals strong investor interest in AI, even as concerns grow about rising startup valuations.
The company is reportedly seeking to raise hundreds of millions of dollars, which would more than triple its valuation from a January deal that made it a unicorn. The funding round, led by Greenoaks Capital, builds on the $110 million Sierra previously raised, according to a report by The Information.
Taylor, former co-CEO of Salesforce, and Bavor are focusing Sierra’s AI tools on helping corporate clients with areas like customer service. This potential funding comes shortly after OpenAI, the maker of ChatGPT, completed a massive $6.6 billion financing round, securing a valuation of $157 billion.
The recent surge in AI investments highlights continued optimism about the technology’s future, despite concerns about the high costs of AI development and the absence of widely adopted use cases. Sierra’s success could further elevate Taylor’s position as a key figure in the growing AI sector.