Prime Highlight:
- Articul8 has raised over half of its $70 million Series B round at a $500 million pre-money valuation to grow in regulated industries.
- The company, spun out of Intel, is already revenue-positive and serves clients including AWS, Hitachi Energy, Franklin Templeton, and Intel.
Key Facts:
- Articul8 has signed 29 paying customers and crossed $90 million in total contract value since January 2024.
- The firm employs 75 people across the US, Brazil, and India, focusing on research and development for industry-specific AI systems.
Background:
Articul8, an enterprise artificial intelligence company spun out of Intel in early 2024, has raised more than half of its planned $70 million Series B funding round at a pre-money valuation of $500 million. The company plans to grow as demand increases for secure and reliable AI in regulated industries.
Founder and Chief Executive Officer Arun K. Subramaniyan said the funding round is being completed in two stages, with the first led by Spain’s Adara Ventures. While he did not reveal the amount raised so far, he said the company expects to close the full round in the first quarter of this year.
The latest valuation marks a sharp increase from Articul8’s $100 million post-money valuation in January 2024. Since then, the Santa Clara-based firm has signed 29 paying customers and crossed $90 million in total contract value. Its clients include Hitachi Energy, Amazon Web Services, Franklin Templeton, and Intel.
Subramaniyan said Articul8 is already revenue-positive and not under pressure to raise capital. The company expects to end the year with annual recurring revenue of more than $57 million, with nearly half of that already recorded.
Articul8 builds customized AI systems that run inside a customer’s own IT environment. The company builds software and AI agents for specific business needs instead of general-purpose models. It focuses on industries like energy, manufacturing, aerospace, finance and semiconductors, where controlling data, accuracy, and audit trails are very important.
The company plans to use the new funding to boost research, improve products, and expand globally. Europe and parts of Asia are key focus areas, including Japan and South Korea. India’s Aditya Birla Ventures has also joined the funding round.
Articul8 works with major technology partners such as Nvidia, Google Cloud, and Amazon Web Services. It employs 75 people, most of whom work in research and development across the US, Brazil, and India.