(Bloomberg) -- Sierra Technologies Inc., the artificial intelligence startup founded by OpenAI Chairman Bret Taylor and former Alphabet Inc. executive Clay Bavor, has raised $175 million in a financing round that values the company at $4.5 billion.
The deal represents a major valuation jump for the company, which was worth nearly $1 billion earlier this year.
Taylor, previously the co-chief executive officer of Salesforce Inc., said in an interview on CNBC Monday that while the funding environment in the industry seems “frothy,” AI’s promise justifies the outlays. “With the benefit of hindsight, it will probably be warranted,” he said, comparing the best companies in the sector to dot-com-era behemoths such as Alphabet’s Google. He cautioned that the industry is also rife with “a lot of snake oil.”
The round was led by Greenoaks Capital Partners, with participation from Thrive Capital, Iconiq Capital and existing investors, a spokesperson said.
Sierra makes AI customer service tools for brands like ADT Inc., the home security company, and Casper Sleep Inc., the mattress company.
Bloomberg previously reported that a new funding round was imminent.
©2024 Bloomberg L.P.