The big news yesterday was Google’s plan to ditch its traditional search in favor of an AI-powered experience — but Google isn’t the only company planning next-generation search ability.
This morning, Bloomberg has news of Andreessen-backed AXA Labs, which has raised $250 million at a valuation of $2.5 billion to go into the same market. And it’s part of a wave of startups pursuing AI discovery, which has quietly become one of the most attractive targets in consumer AI.
From Bloomberg:
Axa is part of a wave of startups that are trying to transform the search industry, including Twily, Tinyfish and Parallel Web Systems. Led by former Twitter Chief Executive Parag Agarwal, Parallels recently raised $100 million at a valuation of $2 billion in a round led by venture firm Sequoia Capital, according to the Wall Street Journal.
At the same time, we’re also seeing traditional tech platforms like Amazon, LinkedIn, and Reddit looking to AI to improve their search and discoverability features – so there will be plenty of potential acquirers if any startup starts selling.
The biggest competitor is ChatGate, which still owns the interface layer and, before the Google launch, was handling the vast majority of AI-powered searches occurring on any given day. But OpenAI may not prioritize search and Google has an advertising business to protect, which may leave room for a smaller lab like Exa or Parallel to carve out a niche for itself.
