Intel spinout Articul8 raises more than half of $70M round at $500M valuation | TechCrunch

"Articul8, an enterprise AI company spun out of Intel in early 2024, has secured more than half of a planned $70 million funding round at a $500 million pre-money valuation, according to its CEO, as it looks to capitalize on growing demand for AI systems in regulated industries. The Series B funding round is structured in two installments, with the first led by Spain's Adara Ventures, Articul8 founder and CEO Arun K. Subramaniyan (pictured above, center) said in an interview."

"Articul8's valuation for its current funding round marks a roughly fivefold increase from the company's $100 million post-money Series A valuation in January 2024. Since then, the Santa Clara-based company said it has surpassed $90 million in total contract value - the cumulative value of all signed customer contracts - from 29 paying customers, including Hitachi Energy, AWS, Franklin Templeton, and Intel."

"Subramaniyan told TechCrunch that Articul8 was not under pressure to raise capital, describing the company as revenue-positive following a series of large enterprise contracts. "We are not cash-strapped," he said. The company expects to finish the year with annual recurring revenue of just over $57 million, Subramaniyan said, with roughly 45% to 50% of that already recognized. Articul8 develops specialized AI systems that operate within customers' own IT environments, rather than relying on shared, general-purpose models."

Articul8 secured more than half of a planned $70 million Series B at a $500 million pre-money valuation. The round is structured in two installments, with the first led by Spain's Adara Ventures. The valuation is about five times the $100 million post-money Series A. The company has surpassed $90 million in total contract value from 29 paying customers including Hitachi Energy, AWS, Franklin Templeton and Intel. Articul8 is revenue-positive and expects annual recurring revenue just over $57 million, with half already recognized. The company develops specialized AI systems deployed inside customers' IT environments for accuracy, auditability, and data control in regulated industries.

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