Increased capital is flowing into AI-focused firms. DeepL, a company that creates writing and text translation software for rival services like Grammarly and Google Translate, announced that it had raised an extra $300 million. $2 billion is its current post-money valuation.

The round, which was spearheaded by Index Ventures, demonstrates the fervent interest that investors currently have in AI firms and the ways in which these businesses are seizing the opportunity. When DeepL raised somewhat more than $100 million in January 2023, its valuation—which is still unprofitable—was estimated at $1 billion. The additional funds will be put toward expanding research and development as well as increasing sales and marketing.

CEO and founder Jarek Kutylowski stated that the company has so far grown primarily organically and that it plans to increase sales and marketing efforts in order to bring on new clients and broaden its existing clientele. It brings up a crucial point for AI startups that want to work with other businesses: despite the fact that a lot of leaders are pushing their teams to develop AI plans for their company, a lot of projects haven’t made it past the pilot or small deployment stage. Increasing that will be crucial for AI technology providers.

According to Kutylowski, the company currently employs roughly 60% technologists and it plans to increase its non-technical workforce in the future. Undoubtedly, achieving a balance between that and research concentration will be a major issue for DeepL. Some of the more established and recent AI businesses, including Anthropic and OpenAI, are undoubtedly in the process of growing, even though they are not as advanced as DeepL. Making AI seem more “human” and seamless, nevertheless, will still be a top concern.

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