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Investing.com -- AI startup Reka AI has secured $110 million in a new funding round from investors including Nvidia (NASDAQ:NVDA) and Snowflake (NYSE:SNOW), tripling its valuation to over $1 billion.
The company, which develops large language models that power generative AI applications, was previously valued at about $300 million in a 2023 investment round, according to PitchBook data.
Founded in 2022 by former researchers from Google parent Alphabet (NASDAQ:GOOGL) Inc. and Meta Platforms Inc (NASDAQ:META)., Reka AI claims to create its models more efficiently than competitors.
The funding comes amid intense investor interest in young AI firms. Snowflake had previously held acquisition talks with Reka AI that ultimately fell through, with Chief Executive Officer Dani Yogatama stating that "both companies decided it made sense to move independently," though collaboration continues.
Reka AI has expanded from 20 to 50 employees over the past year as it works to accelerate product development. The company initially focused on creating efficient foundation models but has expanded to develop tools helping companies with interfaces, application logic and other applications.
Vivek Raghunathan, vice president of AI engineering at Snowflake, said the company would offer Reka AI’s models to its customers, adding: "Very few teams in the world have the capability to build what they’ve built. Almost everyone at that level of talent is at OpenAI, Meta or Anthropic. Reka is one of the rare independents — and they’ve proven they can compete."
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