PYMNTS.com April 14, 2025
Startups that build artificial intelligence (AI) applications on top of large language models (LLMs) are reportedly making rapid gains in both sales and funding.
These startups are reaching as much as $200 million in annual recurring revenue in less than two years and, as a group, increased the amount of funding they attracted by 110% to reach $8.2 billion in 2024, the Financial Times (FT) reported Monday (April 14), citing data from Dealroom.co and Flashpoint.
This category of AI startups includes companies like Perplexity, Synthesia, ElevenLabs, Harvey and Sierra, according to the report.
They also include coding app startups like Anysphere, Reflection AI, Poolside, Magic and Windsurf, formerly Codeium, that have raised hundreds of millions of dollars over the...
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