Grammarly, the developer of an AI-powered writing assistant, has raised over $200 million at a valuation of $13 billion, more than 5 times the company’s previous value of $2.3 billion garnered two years ago, according to PitchBook data.
Grammarly is now the highest valued company that is powered by natural language AI, according to Brendan Burke, a PitchBook analyst who covers artificial intelligence.
The performance of natural language AI has improved significantly in recent years, especially after Google introduced a novel natural language programming method in late 2018, Burke said.
Improvements in NLP performance have led to increased investor interest in the category.
Gong, a platform that uses AI to listen to and analyze the interactions of salespeople with customers, grabbed a $250 million Series E at a $7.25 billion valuation in June.
Burke also pointed to a couple of recent exits in natural language AI startups.
CS Disco, a company that helps analyze and extract key terms from legal documents, priced its IPO at an implied valuation of $1.8 billion this summer.
On Tuesday, virtual voice assistant maker and music app SoundHound announced that it plans to go public via a SPAC at a valuation of $2.1 billion.
Grammarly, which is profitable, was founded in 2009 by Ukrainian developers Alex Shevchenko, Max Lytvyn, and Dmytro Lider.