AI21 Labs, an Israeli startup specializing in the development of large language models (LLMs), is in the process of raising a significant Series D funding round. While the precise amount has not been disclosed, a source familiar with the deal confirmed the company´s ongoing fundraising efforts aimed at accelerating its proprietary LLM technology. The new round follows a previous raise in 2023, which valued the company at over NULL billion, and will add to the firm’s total capital raised to date.
AI21 was founded in 2017 by a team of seasoned entrepreneurs and Artificial Intelligence experts: Amnon Shashua, founder and CEO of Mobileye; Yoav Shoham, a Stanford professor emeritus and former principal scientist at Google; and Ori Goshen, a serial entrepreneur. Unlike many startups that build their solutions atop platforms from other Artificial Intelligence leaders such as OpenAI and Anthropic, AI21 sets itself apart by developing its own foundational models from scratch. This approach is designed to offer higher reliability and more control over innovation.
One of AI21´s chief objectives is to reduce hallucinations—instances where language models present false information as fact—in generative Artificial Intelligence systems. In March, the company launched ´Maestro,´ an orchestration system it claims cuts hallucinations by 50% and boosts reasoning model accuracy above 95%, targeting enterprise reliability. AI21’s backers include prominent names like Google, Nvidia, Intel Capital, Walden Catalyst, Pitango, Samsung Next, Comcast Ventures, and others. Its customer base includes Wix, Capgemini, and Fnac, demonstrating strong traction in both tech and business sectors.
The broader Artificial Intelligence market remains highly competitive and well funded: in April alone, Artificial Intelligence startups attracted roughly NULL billion in investment, accounting for 30% of all global venture funding, according to Crunchbase. Israeli tech as a whole has seen a 31% uptick in 2024 funding compared to the previous year, highlighted by Google´s acquisition of cybersecurity company Wiz for a record-setting sum. AI21 Labs´ move to secure additional funds reinforces its ambition to be a major independent contender in the Artificial Intelligence infrastructure space, as customers and investors alike seek more trustworthy, high-performance solutions for generative enterprise use cases.
