Sierra, the conversational AI customer service platform, has secured $175 million in new funding, pushing its valuation to $4.5 billion. The dramatic increase comes just months after the company's launch, highlighting the fierce competition in enterprise AI.
The funding round, led by Greenoaks Capital with participation from ICONIQ and Thrive Capital, represents a more than fourfold increase from Sierra's $1 billion valuation in January.
Sierra, co-founded by former Salesforce co-CEO Bret Taylor and Google veteran Clay Bavor, helps companies create AI agents for customer interactions. Current clients include ADT, Sonos, and Weight Watchers.
"We think every company in the world, whether it’s a technology company or a 150-year-old company like ADT, can benefit from AI, and the technology is ready right now," Taylor said. Sierra’s fresh funding will support its expansion into new industries and international markets.
The company's platform lets clients customize their AI agents' personalities to match their brands. Clothing retailer Chubbies, for instance, opted for a casual, sarcastic tone, while luxury brands have chosen more formal British accents.
"We really think that your conversational AI agent should be not only transactional but a brand ambassador," Taylor explained, emphasizing the agent's role as an extension of the company’s values and identity.
Sierra's technology combines multiple AI models from providers like OpenAI, Anthropic, and Meta, using a "supervisor" system to ensure accuracy. This approach puts them in direct competition with established players like Salesforce and Microsoft, who are also developing AI customer service solutions.
The investment comes amid a surge in AI funding, with companies like OpenAI recently reaching a $157 billion valuation. According to CB Insights, one-third of venture capital this year has gone to AI startups.
Taylor, who also chairs OpenAI's board, plans to use the funding to expand Sierra's international presence and reach new industries.