Instinct, a developer of invite-only personal AI assistants, is currently in discussions to raise $1 billion. The potential deal would value the startup at $10 billion. These negotiations follow a rapid valuation increase, as the company was valued at $2.5 billion during its Series B round in late August.
The startup, founded by 23-year-old former Sierra researcher Noah Shinn, has secured $350 million in total funding to date. Previous investors include Index Ventures, Benchmark, Conviction Partners, Greenoaks, and Kleiner Perkins. The current round remains unsigned and subject to change.
The company reports over 100,000 users, though the service has faced performance slowdowns due to high demand. Autonomous agents require significant computational resources, creating a capital-intensive cycle. Instinct has not yet implemented user fees, while it faces competition from Meta’s Muse, which launched on September 8.
The broader AI sector is seeing similar valuation trends. Cognition recently raised $2 billion at a $48 billion valuation, while Clay reached a $7.1 billion valuation after raising $115 million. Investors are prioritizing the potential of autonomous agents to handle complex tasks like shopping and travel.
