AI Agent Startup Instinct in Talks for $10 Billion Valuation
The Takeaway
- Instinct in talks for $1 billion funding at $10 billion valuation.
- Startup’s valuation jumps from $2.25 billion in less than a month.
- Instinct’s 100,000+ users cause capacity constraints.
The startup behind personal AI assistant Instinct is in talks to raise $1 billion at a valuation of about $10 billion, a person with knowledge of the deal said. Sequoia Capital and Benchmark have been in talks to lead the financing, the person added.
The Information reported earlier this month that the startup is looking to raise new funding as the invitation-only agent faces constraints in compute capacity. As Instinct’s service has become more widely available, the number of users has grown to more than 100,000, according to the person.
The funding round hasn’t been finalized and the terms and leads could change. The startup’s CEO, Noah Shinn, didn’t have a comment.
The valuation being discussed is a steep jump from its last fundraising. Less than a month ago, the startup, called Spear Street Technology, raised $250 million at a $2.25 billion valuation before the new money, according to PitchBook, in a round co-led by Benchmark and Index Ventures. It has raised a total of $350 million from its backers, which also include Sarah Guo’s Conviction Partners and Neil Mehta’s Greenoaks.
Instinct launched to a limited group of users earlier this year. Users can text Instinct to carry out tasks, like responding to other messages or booking dinner reservations, for example. Meta last week launched Muse, a free AI assistant that functions similar to Instinct.
Instinct has sometimes notified users that it is running at full capacity and “responses may be slower” as people use it for tasks such as negotiating bills and answering emails. Shinn has said he doesn’t want to charge users a fee, suggesting the company could try other ways to make money, such as advertising.