AI startup Sierra raises $175 million at $4.5 billion valuation

Sierra Technologies, an artificial intelligence startup founded by OpenAI Chairman Bret Taylor and former Alphabet executive Clay Bavor, has raised $175 million at a valuation of $4.5 billion, led by Greenoaks Capital Partners, with participation from Thrive Capital, Iconiq Capital and existing investors. The deal represents a significant jump in the company's valuation, which was close to $1 billion earlier this year. Taylor, formerly co-CEO of Salesforce.com, said in an interview on Monday that while the industry's funding environment seems "frothy," the promise of artificial intelligence justifies the spending. He said, "In hindsight, it probably made sense," and compared the industry's best companies to Internet-era giants such as Alphabet's Google. However, he also warned that the industry is also full of "a lot of snake oil," suggesting that there is still a lot of exaggeration or misrepresentation in the industry. Sierra is reported to develop artificial intelligence customer service tools for brands such as home security company ADT Inc. and mattress company Casper Sleep Inc. (CNBC)