Sierra, an AI startup co-founded by former Salesforce co-CEO Bret Taylor, has seen its valuation soar to $4.5 billion, marking a more than fourfold increase in the latest funding round led by Greenoaks Capital. The San Francisco-based company previously held a valuation of $1 billion in January and raised $175 million in this recent financing effort.
Bret Taylor, also the chairman of OpenAI's board and former chairman during Elon Musk's acquisition negotiations of Twitter, is recognized for his pioneering role in developing Google Maps. He teamed up with Sierra's co-founder Clay Bavor, an ex-Google executive with nearly two decades of experience leading virtual reality projects and Google Labs.
Sierra focuses on revolutionizing customer service through AI for major brands like ADT, Sonos, Weight Watchers, and Casper. Launched earlier this year by Taylor and Bavor, the company aims to expand its AI solutions internationally and across various industries. Taylor emphasized the readiness of AI technology to benefit global enterprises and Sierra's intent to address these market demands.
Investors ICONIQ and Thrive Capital, led by Josh Kushner, also participated in the funding round. Taylor describes Sierra’s technology as “conversational AI” and resists the term “chatbot,” which he has banned from their San Francisco office. He aims to create more empathetic and conversational AI interactions, contrasting it with frustrating automated systems like airline bots.
The startup's growth comes amidst a wave of significant AI developments in Silicon Valley. OpenAI recently raised billions, valuing the company at $157 billion, while Perplexity pursues a funding round with a $9 billion valuation. According to CB Insights, one-third of this year's venture capital investments have targeted AI startups.
Taylor remarked on the burgeoning AI sector, noting the immense opportunities in customer experience and service, areas where Sierra is emerging as a leader.
