According to sources, SuSea, the parent company behind the AI-powered search engine You.com, is reportedly finalizing a $50 million Series B funding round. The investment is anticipated to elevate SuSea’s valuation to a range of $700 million to $900 million. The funding aims to bolster You.com’s presence in the AI assistant market, which has gained significant traction since the introduction of ChatGPT.

Leading the Series B funding is venture capital firm Georgian, with additional backing from existing investors. You.com, operational since 2020, has amassed over one billion users. However, it faces formidable competition from tech giants like Microsoft and Google, which have integrated AI into their search offerings, diverting potential users from You.com. To address market challenges, SuSea, headquartered in Palo Alto, California, has pivoted its platform focus to productivity and internet search via an AI assistant.

CEO Richard Socher, formerly Salesforce’s chief scientist, emphasizes the assistant’s ability to generate text and code, as well as accurately sift through technologies to provide answers. You.com sets itself apart with a $15 monthly premium consumer subscription, undercutting competitors like OpenAI, which charge around $20. Despite a decline in visitor numbers and app downloads, You.com’s sales are reportedly on the rise.

Since January 2024, the company has experienced a five-fold increase in annual recurring revenue from both consumer and business-to-business subscriptions, sources reveal. The development coincides with a recent €600 million ($642 million) Series B investment in France’s Mistral AI, signaling significant investor interest in AI-driven ventures, particularly expanding into the US market.

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