Articul8, an enterprise AI company spun out of Intel in early 2024, has secured more than half of a planned 70 million dollar funding round at a 500 million dollar pre-money valuation. The company is capitalizing on growing demand for AI systems in regulated industries.
The Series B funding round is structured in two installments, with the first led by Spain’s Adara Ventures. Articul8 founder and CEO Arun K. Subramaniyan stated the company expects to close the round in the first quarter of this year. He declined to disclose the size of the initial installment.
Articul8’s current valuation marks a roughly fivefold increase from its 100 million dollar post-money Series A valuation in January 2024. Since then, the Santa Clara-based company said it has surpassed 90 million dollars in total contract value from 29 paying customers. These customers include Hitachi Energy, AWS, Franklin Templeton, and Intel.
Subramaniyan said Articul8 was not under pressure to raise capital, describing the company as revenue-positive following a series of large enterprise contracts. He stated they are not cash-strapped. The company expects to finish the year with annual recurring revenue of just over 57 million dollars, with roughly 45 to 50 percent of that already recognized.
Articul8 develops specialized AI systems that operate within customers’ own IT environments, rather than relying on shared, general-purpose models. Instead of selling standalone models, the company packages its technology as software applications and AI agents tailored to specific business functions. It targets regulated industries such as energy, manufacturing, aerospace, financial services, and semiconductors, where accuracy, auditability, and data control are critical.
Subramaniyan said their competition is pretty much everybody, but noted that today the major competitors are the cloud service providers. He added that Articul8’s focus on specialized systems appeals to customers who need predictable results and clear audit trails, something harder to achieve with general-purpose models on shared cloud platforms.
Articul8 plans to use the Series B proceeds primarily to expand research and product development and to scale its operations internationally, with a focus on Europe and parts of Asia. Adara Ventures’ participation will help speed up the European expansion plan. The company is also looking to scale in markets including Japan and South Korea, where it has begun working with large enterprise customers.
India’s Aditya Birla Ventures also participated in the ongoing round. Articul8 works with large tech groups including Nvidia and Google Cloud. Subramaniyan added that Amazon Web Services is both a customer and a partner for the company on some deployments.
The company employs 75 people, with about 80 percent focused on research and development. Its teams are spread across the United States, Brazil, and India.